jan-feb 2011 tb
DESCRIPTION
January-February 2011 Issue of "Transportation Builder" MagazineTRANSCRIPT
The official publication of the American Road amp Transportation Builders Association January-February 2011
wwwartbaorg
2011 ARTBA FedeRAl Issues PRogRAm amp TRAnsPoRTATIon ConsTRuCTIon
CoAlITIon Fly-In
wwwwirtgen-groupcom
Wirtgen America6030 Dana Way middot Antioch TN 37013Telephone 615-501-0600 middot Fax 615-501-0691wwwwirtgenamericacom
The market-leading brands Wirtgen Voumlgele 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 ldquoClose to our customersrdquo
Road and MineRal Technologies
The Four 1 brands For road consTrucTion and mineral processing ndash From a single source
Visit u
s ins
ide
Centr
al Hall
bull BootH
5733
Single Source Ad 8375x10875_Conexpoindd 1 1411 401 PM
TransportationBuilder January-February 2011 3wwwartbaorg
The official publication of the American Road amp Transportation Builders Association VOL 23 NO 1 JANUARY-FEBRUARY 2011
12 2011 ARTBA Federal Issues Program amp Transportation Construction Coalition Fly-In
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 Presidentrsquos Desk
11 Editorrsquos Note
15 ARTBA Foundation News
31 Product of the Month
34 ARTBA News
36 AEM Corner
38 Index to Advertisers
12
26
wwwwirtgen-groupcom
Wirtgen America6030 Dana Way middot Antioch TN 37013Telephone 615-501-0600 middot Fax 615-501-0691wwwwirtgenamericacom
The market-leading brands Wirtgen Voumlgele 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 ldquoClose to our customersrdquo
Road and MineRal Technologies
The Four 1 brands For road consTrucTion and mineral processing ndash From a single source
Visit u
s ins
ide
Centr
al Hall
bull BootH
5733
Single Source Ad 8375x10875_Conexpoindd 1 1411 401 PM
TransportationBuilder January-February 20114 wwwartbaorg
Transportation Builderreg (TB) is the official publication of the American Road amp Trans-portation 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 legisla-tive and regulatory news critical to the success and future of the transportation construction industry
Publisher T Peter Ruane transportationbuilderartbaorgEditorial Director Matt Jeanneret mjeanneretartbaorgEditor Jaime Mahoney jmahoneyartbaorgContributing Writers Robert Bain RBconsult Alison Premo Black ARTBA vice president of policy ablackartbaorg William Buechner ARTBA vice president of economics amp research wbuechnerartbaorg Bhaskar Chakravorti McKinsey amp Company Matthew Jeanneret ARTBA senior vice president of communications amp marketing mjeanneretartbaorg Vincent Jue Soilmec North America Rich Juliano ARTBA vice president of federal amp state relations rjulianoartbaorg Jeffrey Solsby ARTBA director of public affairs jsolsbyartbaorg
Transportation Builderreg (ISSN 1043-4054) is published bi-monthly by the American Road amp Transportation Builders Association (ARTBA) Postmaster Send change of address to Transportation Builderreg co ARTBA The ARTBA Building 1219 28th Street NW Washington DC 20007 Telephone 202-289-4434 Fax 202-289-4435 Internet wwwartbaorg E-mail artbadcaolcom Periodicals postage paid at Washington DC and additional mailing offices Subscriptions are $120year for ARTBA members which is included in the dues $105year for non-members and $200year non-US mailing addresses Copyright copy2011 ARTBA All rights reserved Material may not be reproduced in any form without written permission from the publisher Reg US Patent amp Trademark Office
Executive CommitteeChairman Bill Cox Corman Construction Inc Annapolis Junction Md Senior Vice Chairman Paul Yarossi HNTB Corporation New York NYFirst Vice Chairman Steve Wright Wright Brothers Construction Company Charleston TennNortheastern Region Vice Chairman Nick Ivanoff Ammann amp Whitney New York NYCentral Region Vice Chairman Kenneth Aldridge Aldridge Electric Inc Libertyville IllSouthern Region Vice Chairman Thomas S Elmore Eutaw Construction Co Inc Aberdeen MSWestern Region Vice Chairman Jim Andoga Austin Bridge amp Road Irving TexasVice Chairman AtndashLarge Doug Black Oldcastle Materials Inc Atlanta Ga Vice Chairman AtndashLarge Robert Close Parsons Brinckerhoff Orange CalifVice Chairman AtndashLarge John Houle 3M Traffic Safety Systems Division St Paul MinnVice Chairman AtndashLarge John Kulka HRI Inc State College Pa Vice Chairman AtndashLarge Robert H Luffy American Bridge Company Corapolis PaVice Chairman AtndashLarge David S Zachry Zachry Construction Corporation San Antonio TexasARTBAndashTDF Board of Trustees Chairman Leo Vecellio Jr Vecellio Group Inc West Palm Beach FlaYoung Executive Leadership Council Chairman Christopher Fronheiser AECOM Baltimore MdTreasurer Tom Hill Summit Materials LLC Washington DCSecretary and PresidentCEO T Peter Ruane ARTBA Washington DCContractors Thomas Iovino Judlau Contracting Inc College Point NYContractors First Vice President Jeffrey F Nelson David Nelson Construction Co Palm Harbor FlaResearch amp Education Robert J Plymale Marshall University Huntington WVAEM Ronald M DeFeo TEREX Corporation Westport ConnMaterials amp Services Aaron Ozinga Ozinga Materials Inc Mokena IllPlanning amp Design Michael P Hoff PE AECOM Middleton WisPublicndashPrivate Partnerships DJ Gribbon Macquarie Securities (USA) Inc Infrastructure Group New York NYTraffic Safety Industry Joy Shamay Evonik Degussa Corp Bluffton SCTransportation Officials Darren Kettle Ventura County Transportation Commission Ventura CalifCouncil of State Executives Chairman Robert A Briant Jr UTCA of New Jersey Allenwood NJ Immediate Past ARTBA Chairman Larry Tate Caterpillar Inc Decatur Ill Past Chairmenrsquos Council Representative James R Madara PE Gannett Fleming Inc Allentown Pa
Advertising SalesmdashLiz Cavallaro Tel 202-289-4434 bull Fax 202-289-4437
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
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 ARTBArsquos programs and services
Wersquove heard you loud and clear and coming February 28 be on the lookout for the interactive digital ldquoARTBA Washington Newslinerdquo
It will be your one-stop resource for all of the transportation policy eco-nomic and safety stories yoursquove come to expect plus value-added content more member and industry ldquonews nuggetsrdquo better graphics and an easy-to-read formatmdashall improvements aimed at better serving you
Digital Newsline Announce-TBindd 1 2142011 25644 PM
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
TransportationBuilder January-February 20116 wwwartbaorg
ments materials highway structures and bridges and intelligent transporta-tion systems
Nominate TodayAdditional YEDP information
is on pages 7 of this issue and on-line at wwwartbatdforg Contact ARTBArsquos Jeff Solsby at 2022894434 or jsolsbyartbaorg with any questions
I have previously sent several of my firmrsquos employees to the YEDP and can tell you from personal experience that it is an investment that pays divi-dends over the long-term We look forward to receiving your referrals and working with you to build a brighter future for our industry
fromthechairman
William G CoxCorman Construction Inc Annapolis Junction Md
Itrsquos simple but true Our ability to engage the next generation of lead-ers is critical for ARTBArsquos success
and ensuring the transportation con-struction industry has a stronger voice in Washington
One of my goals as chairman is to provide opportunities to get indus-try ldquorising starsrdquo more involved And I am asking for your help in achieving it Please refer candidates for the 2011 ARTBA Young Executive Develop-ment Program (YEDP) held May 23-26 in the Nationrsquos Capital
Three Days in WashingtonThe YEDP is a three-day immer-
sion course designed to introduce attendees to the federal legislative and regulatory policies and explore ARTBArsquos pivotal role in shaping them It features sessions on highwaytransit financing economics environmental and legal issues public-private partner-ships and industry innovation
It is purposely held in conjunction with the ARTBA Federal Issues Pro-gram and Transportation Construc-tion Fly-In so participants can visit with their members of Congress and lobby them on transportation development issues With the highwaytransit bill slated for congressional consideration in 2011 itrsquos more important than ever for industry professionals to urge law-
makers for timely action on a robustly-financed measure
Improvements for 2011Wersquove made some enhancements
to this yearrsquos 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 wersquove added addi-tional opportunities for YEDP fellows to interact with ARTBA members fed-eral agencies officials and members of Congress and their staffs
Finally there will be a fascinat-ing tour at FHWArsquos Turner-Fairbank Highway Research Center The facility houses more than 20 laboratories and data centers and conducts advanced research in vehicle-highway interac-tion nanotechnology and a host of other types of research in safety pave-
Building the Next GenerationNominate a ldquoRising Starrdquo for ARTBArsquos May Young Executive Program
Graduates of the 2010 ARTBA-TDF Young Executive Development Program
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
wwwwirtgen-groupcom
Wirtgen America6030 Dana Way middot Antioch TN 37013Telephone 615-501-0600 middot Fax 615-501-0691wwwwirtgenamericacom
The market-leading brands Wirtgen Voumlgele 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 ldquoClose to our customersrdquo
Road and MineRal Technologies
The Four 1 brands For road consTrucTion and mineral processing ndash From a single source
Visit u
s ins
ide
Centr
al Hall
bull BootH
5733
Single Source Ad 8375x10875_Conexpoindd 1 1411 401 PM
TransportationBuilder January-February 2011 3wwwartbaorg
The official publication of the American Road amp Transportation Builders Association VOL 23 NO 1 JANUARY-FEBRUARY 2011
12 2011 ARTBA Federal Issues Program amp Transportation Construction Coalition Fly-In
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 Presidentrsquos Desk
11 Editorrsquos Note
15 ARTBA Foundation News
31 Product of the Month
34 ARTBA News
36 AEM Corner
38 Index to Advertisers
12
26
wwwwirtgen-groupcom
Wirtgen America6030 Dana Way middot Antioch TN 37013Telephone 615-501-0600 middot Fax 615-501-0691wwwwirtgenamericacom
The market-leading brands Wirtgen Voumlgele 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 ldquoClose to our customersrdquo
Road and MineRal Technologies
The Four 1 brands For road consTrucTion and mineral processing ndash From a single source
Visit u
s ins
ide
Centr
al Hall
bull BootH
5733
Single Source Ad 8375x10875_Conexpoindd 1 1411 401 PM
TransportationBuilder January-February 20114 wwwartbaorg
Transportation Builderreg (TB) is the official publication of the American Road amp Trans-portation 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 legisla-tive and regulatory news critical to the success and future of the transportation construction industry
Publisher T Peter Ruane transportationbuilderartbaorgEditorial Director Matt Jeanneret mjeanneretartbaorgEditor Jaime Mahoney jmahoneyartbaorgContributing Writers Robert Bain RBconsult Alison Premo Black ARTBA vice president of policy ablackartbaorg William Buechner ARTBA vice president of economics amp research wbuechnerartbaorg Bhaskar Chakravorti McKinsey amp Company Matthew Jeanneret ARTBA senior vice president of communications amp marketing mjeanneretartbaorg Vincent Jue Soilmec North America Rich Juliano ARTBA vice president of federal amp state relations rjulianoartbaorg Jeffrey Solsby ARTBA director of public affairs jsolsbyartbaorg
Transportation Builderreg (ISSN 1043-4054) is published bi-monthly by the American Road amp Transportation Builders Association (ARTBA) Postmaster Send change of address to Transportation Builderreg co ARTBA The ARTBA Building 1219 28th Street NW Washington DC 20007 Telephone 202-289-4434 Fax 202-289-4435 Internet wwwartbaorg E-mail artbadcaolcom Periodicals postage paid at Washington DC and additional mailing offices Subscriptions are $120year for ARTBA members which is included in the dues $105year for non-members and $200year non-US mailing addresses Copyright copy2011 ARTBA All rights reserved Material may not be reproduced in any form without written permission from the publisher Reg US Patent amp Trademark Office
Executive CommitteeChairman Bill Cox Corman Construction Inc Annapolis Junction Md Senior Vice Chairman Paul Yarossi HNTB Corporation New York NYFirst Vice Chairman Steve Wright Wright Brothers Construction Company Charleston TennNortheastern Region Vice Chairman Nick Ivanoff Ammann amp Whitney New York NYCentral Region Vice Chairman Kenneth Aldridge Aldridge Electric Inc Libertyville IllSouthern Region Vice Chairman Thomas S Elmore Eutaw Construction Co Inc Aberdeen MSWestern Region Vice Chairman Jim Andoga Austin Bridge amp Road Irving TexasVice Chairman AtndashLarge Doug Black Oldcastle Materials Inc Atlanta Ga Vice Chairman AtndashLarge Robert Close Parsons Brinckerhoff Orange CalifVice Chairman AtndashLarge John Houle 3M Traffic Safety Systems Division St Paul MinnVice Chairman AtndashLarge John Kulka HRI Inc State College Pa Vice Chairman AtndashLarge Robert H Luffy American Bridge Company Corapolis PaVice Chairman AtndashLarge David S Zachry Zachry Construction Corporation San Antonio TexasARTBAndashTDF Board of Trustees Chairman Leo Vecellio Jr Vecellio Group Inc West Palm Beach FlaYoung Executive Leadership Council Chairman Christopher Fronheiser AECOM Baltimore MdTreasurer Tom Hill Summit Materials LLC Washington DCSecretary and PresidentCEO T Peter Ruane ARTBA Washington DCContractors Thomas Iovino Judlau Contracting Inc College Point NYContractors First Vice President Jeffrey F Nelson David Nelson Construction Co Palm Harbor FlaResearch amp Education Robert J Plymale Marshall University Huntington WVAEM Ronald M DeFeo TEREX Corporation Westport ConnMaterials amp Services Aaron Ozinga Ozinga Materials Inc Mokena IllPlanning amp Design Michael P Hoff PE AECOM Middleton WisPublicndashPrivate Partnerships DJ Gribbon Macquarie Securities (USA) Inc Infrastructure Group New York NYTraffic Safety Industry Joy Shamay Evonik Degussa Corp Bluffton SCTransportation Officials Darren Kettle Ventura County Transportation Commission Ventura CalifCouncil of State Executives Chairman Robert A Briant Jr UTCA of New Jersey Allenwood NJ Immediate Past ARTBA Chairman Larry Tate Caterpillar Inc Decatur Ill Past Chairmenrsquos Council Representative James R Madara PE Gannett Fleming Inc Allentown Pa
Advertising SalesmdashLiz Cavallaro Tel 202-289-4434 bull Fax 202-289-4437
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
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 ARTBArsquos programs and services
Wersquove heard you loud and clear and coming February 28 be on the lookout for the interactive digital ldquoARTBA Washington Newslinerdquo
It will be your one-stop resource for all of the transportation policy eco-nomic and safety stories yoursquove come to expect plus value-added content more member and industry ldquonews nuggetsrdquo better graphics and an easy-to-read formatmdashall improvements aimed at better serving you
Digital Newsline Announce-TBindd 1 2142011 25644 PM
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
TransportationBuilder January-February 20116 wwwartbaorg
ments materials highway structures and bridges and intelligent transporta-tion systems
Nominate TodayAdditional YEDP information
is on pages 7 of this issue and on-line at wwwartbatdforg Contact ARTBArsquos Jeff Solsby at 2022894434 or jsolsbyartbaorg with any questions
I have previously sent several of my firmrsquos employees to the YEDP and can tell you from personal experience that it is an investment that pays divi-dends over the long-term We look forward to receiving your referrals and working with you to build a brighter future for our industry
fromthechairman
William G CoxCorman Construction Inc Annapolis Junction Md
Itrsquos simple but true Our ability to engage the next generation of lead-ers is critical for ARTBArsquos success
and ensuring the transportation con-struction industry has a stronger voice in Washington
One of my goals as chairman is to provide opportunities to get indus-try ldquorising starsrdquo more involved And I am asking for your help in achieving it Please refer candidates for the 2011 ARTBA Young Executive Develop-ment Program (YEDP) held May 23-26 in the Nationrsquos Capital
Three Days in WashingtonThe YEDP is a three-day immer-
sion course designed to introduce attendees to the federal legislative and regulatory policies and explore ARTBArsquos pivotal role in shaping them It features sessions on highwaytransit financing economics environmental and legal issues public-private partner-ships and industry innovation
It is purposely held in conjunction with the ARTBA Federal Issues Pro-gram and Transportation Construc-tion Fly-In so participants can visit with their members of Congress and lobby them on transportation development issues With the highwaytransit bill slated for congressional consideration in 2011 itrsquos more important than ever for industry professionals to urge law-
makers for timely action on a robustly-financed measure
Improvements for 2011Wersquove made some enhancements
to this yearrsquos 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 wersquove added addi-tional opportunities for YEDP fellows to interact with ARTBA members fed-eral agencies officials and members of Congress and their staffs
Finally there will be a fascinat-ing tour at FHWArsquos Turner-Fairbank Highway Research Center The facility houses more than 20 laboratories and data centers and conducts advanced research in vehicle-highway interac-tion nanotechnology and a host of other types of research in safety pave-
Building the Next GenerationNominate a ldquoRising Starrdquo for ARTBArsquos May Young Executive Program
Graduates of the 2010 ARTBA-TDF Young Executive Development Program
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 3wwwartbaorg
The official publication of the American Road amp Transportation Builders Association VOL 23 NO 1 JANUARY-FEBRUARY 2011
12 2011 ARTBA Federal Issues Program amp Transportation Construction Coalition Fly-In
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 Presidentrsquos Desk
11 Editorrsquos Note
15 ARTBA Foundation News
31 Product of the Month
34 ARTBA News
36 AEM Corner
38 Index to Advertisers
12
26
wwwwirtgen-groupcom
Wirtgen America6030 Dana Way middot Antioch TN 37013Telephone 615-501-0600 middot Fax 615-501-0691wwwwirtgenamericacom
The market-leading brands Wirtgen Voumlgele 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 ldquoClose to our customersrdquo
Road and MineRal Technologies
The Four 1 brands For road consTrucTion and mineral processing ndash From a single source
Visit u
s ins
ide
Centr
al Hall
bull BootH
5733
Single Source Ad 8375x10875_Conexpoindd 1 1411 401 PM
TransportationBuilder January-February 20114 wwwartbaorg
Transportation Builderreg (TB) is the official publication of the American Road amp Trans-portation 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 legisla-tive and regulatory news critical to the success and future of the transportation construction industry
Publisher T Peter Ruane transportationbuilderartbaorgEditorial Director Matt Jeanneret mjeanneretartbaorgEditor Jaime Mahoney jmahoneyartbaorgContributing Writers Robert Bain RBconsult Alison Premo Black ARTBA vice president of policy ablackartbaorg William Buechner ARTBA vice president of economics amp research wbuechnerartbaorg Bhaskar Chakravorti McKinsey amp Company Matthew Jeanneret ARTBA senior vice president of communications amp marketing mjeanneretartbaorg Vincent Jue Soilmec North America Rich Juliano ARTBA vice president of federal amp state relations rjulianoartbaorg Jeffrey Solsby ARTBA director of public affairs jsolsbyartbaorg
Transportation Builderreg (ISSN 1043-4054) is published bi-monthly by the American Road amp Transportation Builders Association (ARTBA) Postmaster Send change of address to Transportation Builderreg co ARTBA The ARTBA Building 1219 28th Street NW Washington DC 20007 Telephone 202-289-4434 Fax 202-289-4435 Internet wwwartbaorg E-mail artbadcaolcom Periodicals postage paid at Washington DC and additional mailing offices Subscriptions are $120year for ARTBA members which is included in the dues $105year for non-members and $200year non-US mailing addresses Copyright copy2011 ARTBA All rights reserved Material may not be reproduced in any form without written permission from the publisher Reg US Patent amp Trademark Office
Executive CommitteeChairman Bill Cox Corman Construction Inc Annapolis Junction Md Senior Vice Chairman Paul Yarossi HNTB Corporation New York NYFirst Vice Chairman Steve Wright Wright Brothers Construction Company Charleston TennNortheastern Region Vice Chairman Nick Ivanoff Ammann amp Whitney New York NYCentral Region Vice Chairman Kenneth Aldridge Aldridge Electric Inc Libertyville IllSouthern Region Vice Chairman Thomas S Elmore Eutaw Construction Co Inc Aberdeen MSWestern Region Vice Chairman Jim Andoga Austin Bridge amp Road Irving TexasVice Chairman AtndashLarge Doug Black Oldcastle Materials Inc Atlanta Ga Vice Chairman AtndashLarge Robert Close Parsons Brinckerhoff Orange CalifVice Chairman AtndashLarge John Houle 3M Traffic Safety Systems Division St Paul MinnVice Chairman AtndashLarge John Kulka HRI Inc State College Pa Vice Chairman AtndashLarge Robert H Luffy American Bridge Company Corapolis PaVice Chairman AtndashLarge David S Zachry Zachry Construction Corporation San Antonio TexasARTBAndashTDF Board of Trustees Chairman Leo Vecellio Jr Vecellio Group Inc West Palm Beach FlaYoung Executive Leadership Council Chairman Christopher Fronheiser AECOM Baltimore MdTreasurer Tom Hill Summit Materials LLC Washington DCSecretary and PresidentCEO T Peter Ruane ARTBA Washington DCContractors Thomas Iovino Judlau Contracting Inc College Point NYContractors First Vice President Jeffrey F Nelson David Nelson Construction Co Palm Harbor FlaResearch amp Education Robert J Plymale Marshall University Huntington WVAEM Ronald M DeFeo TEREX Corporation Westport ConnMaterials amp Services Aaron Ozinga Ozinga Materials Inc Mokena IllPlanning amp Design Michael P Hoff PE AECOM Middleton WisPublicndashPrivate Partnerships DJ Gribbon Macquarie Securities (USA) Inc Infrastructure Group New York NYTraffic Safety Industry Joy Shamay Evonik Degussa Corp Bluffton SCTransportation Officials Darren Kettle Ventura County Transportation Commission Ventura CalifCouncil of State Executives Chairman Robert A Briant Jr UTCA of New Jersey Allenwood NJ Immediate Past ARTBA Chairman Larry Tate Caterpillar Inc Decatur Ill Past Chairmenrsquos Council Representative James R Madara PE Gannett Fleming Inc Allentown Pa
Advertising SalesmdashLiz Cavallaro Tel 202-289-4434 bull Fax 202-289-4437
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
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 ARTBArsquos programs and services
Wersquove heard you loud and clear and coming February 28 be on the lookout for the interactive digital ldquoARTBA Washington Newslinerdquo
It will be your one-stop resource for all of the transportation policy eco-nomic and safety stories yoursquove come to expect plus value-added content more member and industry ldquonews nuggetsrdquo better graphics and an easy-to-read formatmdashall improvements aimed at better serving you
Digital Newsline Announce-TBindd 1 2142011 25644 PM
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
TransportationBuilder January-February 20116 wwwartbaorg
ments materials highway structures and bridges and intelligent transporta-tion systems
Nominate TodayAdditional YEDP information
is on pages 7 of this issue and on-line at wwwartbatdforg Contact ARTBArsquos Jeff Solsby at 2022894434 or jsolsbyartbaorg with any questions
I have previously sent several of my firmrsquos employees to the YEDP and can tell you from personal experience that it is an investment that pays divi-dends over the long-term We look forward to receiving your referrals and working with you to build a brighter future for our industry
fromthechairman
William G CoxCorman Construction Inc Annapolis Junction Md
Itrsquos simple but true Our ability to engage the next generation of lead-ers is critical for ARTBArsquos success
and ensuring the transportation con-struction industry has a stronger voice in Washington
One of my goals as chairman is to provide opportunities to get indus-try ldquorising starsrdquo more involved And I am asking for your help in achieving it Please refer candidates for the 2011 ARTBA Young Executive Develop-ment Program (YEDP) held May 23-26 in the Nationrsquos Capital
Three Days in WashingtonThe YEDP is a three-day immer-
sion course designed to introduce attendees to the federal legislative and regulatory policies and explore ARTBArsquos pivotal role in shaping them It features sessions on highwaytransit financing economics environmental and legal issues public-private partner-ships and industry innovation
It is purposely held in conjunction with the ARTBA Federal Issues Pro-gram and Transportation Construc-tion Fly-In so participants can visit with their members of Congress and lobby them on transportation development issues With the highwaytransit bill slated for congressional consideration in 2011 itrsquos more important than ever for industry professionals to urge law-
makers for timely action on a robustly-financed measure
Improvements for 2011Wersquove made some enhancements
to this yearrsquos 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 wersquove added addi-tional opportunities for YEDP fellows to interact with ARTBA members fed-eral agencies officials and members of Congress and their staffs
Finally there will be a fascinat-ing tour at FHWArsquos Turner-Fairbank Highway Research Center The facility houses more than 20 laboratories and data centers and conducts advanced research in vehicle-highway interac-tion nanotechnology and a host of other types of research in safety pave-
Building the Next GenerationNominate a ldquoRising Starrdquo for ARTBArsquos May Young Executive Program
Graduates of the 2010 ARTBA-TDF Young Executive Development Program
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 20114 wwwartbaorg
Transportation Builderreg (TB) is the official publication of the American Road amp Trans-portation 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 legisla-tive and regulatory news critical to the success and future of the transportation construction industry
Publisher T Peter Ruane transportationbuilderartbaorgEditorial Director Matt Jeanneret mjeanneretartbaorgEditor Jaime Mahoney jmahoneyartbaorgContributing Writers Robert Bain RBconsult Alison Premo Black ARTBA vice president of policy ablackartbaorg William Buechner ARTBA vice president of economics amp research wbuechnerartbaorg Bhaskar Chakravorti McKinsey amp Company Matthew Jeanneret ARTBA senior vice president of communications amp marketing mjeanneretartbaorg Vincent Jue Soilmec North America Rich Juliano ARTBA vice president of federal amp state relations rjulianoartbaorg Jeffrey Solsby ARTBA director of public affairs jsolsbyartbaorg
Transportation Builderreg (ISSN 1043-4054) is published bi-monthly by the American Road amp Transportation Builders Association (ARTBA) Postmaster Send change of address to Transportation Builderreg co ARTBA The ARTBA Building 1219 28th Street NW Washington DC 20007 Telephone 202-289-4434 Fax 202-289-4435 Internet wwwartbaorg E-mail artbadcaolcom Periodicals postage paid at Washington DC and additional mailing offices Subscriptions are $120year for ARTBA members which is included in the dues $105year for non-members and $200year non-US mailing addresses Copyright copy2011 ARTBA All rights reserved Material may not be reproduced in any form without written permission from the publisher Reg US Patent amp Trademark Office
Executive CommitteeChairman Bill Cox Corman Construction Inc Annapolis Junction Md Senior Vice Chairman Paul Yarossi HNTB Corporation New York NYFirst Vice Chairman Steve Wright Wright Brothers Construction Company Charleston TennNortheastern Region Vice Chairman Nick Ivanoff Ammann amp Whitney New York NYCentral Region Vice Chairman Kenneth Aldridge Aldridge Electric Inc Libertyville IllSouthern Region Vice Chairman Thomas S Elmore Eutaw Construction Co Inc Aberdeen MSWestern Region Vice Chairman Jim Andoga Austin Bridge amp Road Irving TexasVice Chairman AtndashLarge Doug Black Oldcastle Materials Inc Atlanta Ga Vice Chairman AtndashLarge Robert Close Parsons Brinckerhoff Orange CalifVice Chairman AtndashLarge John Houle 3M Traffic Safety Systems Division St Paul MinnVice Chairman AtndashLarge John Kulka HRI Inc State College Pa Vice Chairman AtndashLarge Robert H Luffy American Bridge Company Corapolis PaVice Chairman AtndashLarge David S Zachry Zachry Construction Corporation San Antonio TexasARTBAndashTDF Board of Trustees Chairman Leo Vecellio Jr Vecellio Group Inc West Palm Beach FlaYoung Executive Leadership Council Chairman Christopher Fronheiser AECOM Baltimore MdTreasurer Tom Hill Summit Materials LLC Washington DCSecretary and PresidentCEO T Peter Ruane ARTBA Washington DCContractors Thomas Iovino Judlau Contracting Inc College Point NYContractors First Vice President Jeffrey F Nelson David Nelson Construction Co Palm Harbor FlaResearch amp Education Robert J Plymale Marshall University Huntington WVAEM Ronald M DeFeo TEREX Corporation Westport ConnMaterials amp Services Aaron Ozinga Ozinga Materials Inc Mokena IllPlanning amp Design Michael P Hoff PE AECOM Middleton WisPublicndashPrivate Partnerships DJ Gribbon Macquarie Securities (USA) Inc Infrastructure Group New York NYTraffic Safety Industry Joy Shamay Evonik Degussa Corp Bluffton SCTransportation Officials Darren Kettle Ventura County Transportation Commission Ventura CalifCouncil of State Executives Chairman Robert A Briant Jr UTCA of New Jersey Allenwood NJ Immediate Past ARTBA Chairman Larry Tate Caterpillar Inc Decatur Ill Past Chairmenrsquos Council Representative James R Madara PE Gannett Fleming Inc Allentown Pa
Advertising SalesmdashLiz Cavallaro Tel 202-289-4434 bull Fax 202-289-4437
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
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 ARTBArsquos programs and services
Wersquove heard you loud and clear and coming February 28 be on the lookout for the interactive digital ldquoARTBA Washington Newslinerdquo
It will be your one-stop resource for all of the transportation policy eco-nomic and safety stories yoursquove come to expect plus value-added content more member and industry ldquonews nuggetsrdquo better graphics and an easy-to-read formatmdashall improvements aimed at better serving you
Digital Newsline Announce-TBindd 1 2142011 25644 PM
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
TransportationBuilder January-February 20116 wwwartbaorg
ments materials highway structures and bridges and intelligent transporta-tion systems
Nominate TodayAdditional YEDP information
is on pages 7 of this issue and on-line at wwwartbatdforg Contact ARTBArsquos Jeff Solsby at 2022894434 or jsolsbyartbaorg with any questions
I have previously sent several of my firmrsquos employees to the YEDP and can tell you from personal experience that it is an investment that pays divi-dends over the long-term We look forward to receiving your referrals and working with you to build a brighter future for our industry
fromthechairman
William G CoxCorman Construction Inc Annapolis Junction Md
Itrsquos simple but true Our ability to engage the next generation of lead-ers is critical for ARTBArsquos success
and ensuring the transportation con-struction industry has a stronger voice in Washington
One of my goals as chairman is to provide opportunities to get indus-try ldquorising starsrdquo more involved And I am asking for your help in achieving it Please refer candidates for the 2011 ARTBA Young Executive Develop-ment Program (YEDP) held May 23-26 in the Nationrsquos Capital
Three Days in WashingtonThe YEDP is a three-day immer-
sion course designed to introduce attendees to the federal legislative and regulatory policies and explore ARTBArsquos pivotal role in shaping them It features sessions on highwaytransit financing economics environmental and legal issues public-private partner-ships and industry innovation
It is purposely held in conjunction with the ARTBA Federal Issues Pro-gram and Transportation Construc-tion Fly-In so participants can visit with their members of Congress and lobby them on transportation development issues With the highwaytransit bill slated for congressional consideration in 2011 itrsquos more important than ever for industry professionals to urge law-
makers for timely action on a robustly-financed measure
Improvements for 2011Wersquove made some enhancements
to this yearrsquos 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 wersquove added addi-tional opportunities for YEDP fellows to interact with ARTBA members fed-eral agencies officials and members of Congress and their staffs
Finally there will be a fascinat-ing tour at FHWArsquos Turner-Fairbank Highway Research Center The facility houses more than 20 laboratories and data centers and conducts advanced research in vehicle-highway interac-tion nanotechnology and a host of other types of research in safety pave-
Building the Next GenerationNominate a ldquoRising Starrdquo for ARTBArsquos May Young Executive Program
Graduates of the 2010 ARTBA-TDF Young Executive Development Program
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
wwwcnacom
CNA AND ARTBADRIVING THROUGH THE TOUGHEST CLAIMS FOR OVER 15 YEARSCNA 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 yoursquore looking for a partner who can help you get better mileage
handling claim exposures hellip we can show you morereg
For more information contact your independent insurance agent or visit wwwcnacom
Use of the term partnership andor partner should not be construed to represent a legally binding partnership CNA is a registered trademark of CNA Financial Corporation Copyright copy 2010 CNA All rights reserved
LIKE HIGHWAYS AND CLOVERLEAF INTERCHANGESGOOD PARTNERS ARE STRONGER TOGETHER
CNACM-141_ARTBAClaimTransBuilder_SeptoctLayout 1 92210 324 PM Page 1
TransportationBuilder January-February 20116 wwwartbaorg
ments materials highway structures and bridges and intelligent transporta-tion systems
Nominate TodayAdditional YEDP information
is on pages 7 of this issue and on-line at wwwartbatdforg Contact ARTBArsquos Jeff Solsby at 2022894434 or jsolsbyartbaorg with any questions
I have previously sent several of my firmrsquos employees to the YEDP and can tell you from personal experience that it is an investment that pays divi-dends over the long-term We look forward to receiving your referrals and working with you to build a brighter future for our industry
fromthechairman
William G CoxCorman Construction Inc Annapolis Junction Md
Itrsquos simple but true Our ability to engage the next generation of lead-ers is critical for ARTBArsquos success
and ensuring the transportation con-struction industry has a stronger voice in Washington
One of my goals as chairman is to provide opportunities to get indus-try ldquorising starsrdquo more involved And I am asking for your help in achieving it Please refer candidates for the 2011 ARTBA Young Executive Develop-ment Program (YEDP) held May 23-26 in the Nationrsquos Capital
Three Days in WashingtonThe YEDP is a three-day immer-
sion course designed to introduce attendees to the federal legislative and regulatory policies and explore ARTBArsquos pivotal role in shaping them It features sessions on highwaytransit financing economics environmental and legal issues public-private partner-ships and industry innovation
It is purposely held in conjunction with the ARTBA Federal Issues Pro-gram and Transportation Construc-tion Fly-In so participants can visit with their members of Congress and lobby them on transportation development issues With the highwaytransit bill slated for congressional consideration in 2011 itrsquos more important than ever for industry professionals to urge law-
makers for timely action on a robustly-financed measure
Improvements for 2011Wersquove made some enhancements
to this yearrsquos 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 wersquove added addi-tional opportunities for YEDP fellows to interact with ARTBA members fed-eral agencies officials and members of Congress and their staffs
Finally there will be a fascinat-ing tour at FHWArsquos Turner-Fairbank Highway Research Center The facility houses more than 20 laboratories and data centers and conducts advanced research in vehicle-highway interac-tion nanotechnology and a host of other types of research in safety pave-
Building the Next GenerationNominate a ldquoRising Starrdquo for ARTBArsquos May Young Executive Program
Graduates of the 2010 ARTBA-TDF Young Executive Development Program
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 20116 wwwartbaorg
ments materials highway structures and bridges and intelligent transporta-tion systems
Nominate TodayAdditional YEDP information
is on pages 7 of this issue and on-line at wwwartbatdforg Contact ARTBArsquos Jeff Solsby at 2022894434 or jsolsbyartbaorg with any questions
I have previously sent several of my firmrsquos employees to the YEDP and can tell you from personal experience that it is an investment that pays divi-dends over the long-term We look forward to receiving your referrals and working with you to build a brighter future for our industry
fromthechairman
William G CoxCorman Construction Inc Annapolis Junction Md
Itrsquos simple but true Our ability to engage the next generation of lead-ers is critical for ARTBArsquos success
and ensuring the transportation con-struction industry has a stronger voice in Washington
One of my goals as chairman is to provide opportunities to get indus-try ldquorising starsrdquo more involved And I am asking for your help in achieving it Please refer candidates for the 2011 ARTBA Young Executive Develop-ment Program (YEDP) held May 23-26 in the Nationrsquos Capital
Three Days in WashingtonThe YEDP is a three-day immer-
sion course designed to introduce attendees to the federal legislative and regulatory policies and explore ARTBArsquos pivotal role in shaping them It features sessions on highwaytransit financing economics environmental and legal issues public-private partner-ships and industry innovation
It is purposely held in conjunction with the ARTBA Federal Issues Pro-gram and Transportation Construc-tion Fly-In so participants can visit with their members of Congress and lobby them on transportation development issues With the highwaytransit bill slated for congressional consideration in 2011 itrsquos more important than ever for industry professionals to urge law-
makers for timely action on a robustly-financed measure
Improvements for 2011Wersquove made some enhancements
to this yearrsquos 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 wersquove added addi-tional opportunities for YEDP fellows to interact with ARTBA members fed-eral agencies officials and members of Congress and their staffs
Finally there will be a fascinat-ing tour at FHWArsquos Turner-Fairbank Highway Research Center The facility houses more than 20 laboratories and data centers and conducts advanced research in vehicle-highway interac-tion nanotechnology and a host of other types of research in safety pave-
Building the Next GenerationNominate a ldquoRising Starrdquo for ARTBArsquos May Young Executive Program
Graduates of the 2010 ARTBA-TDF Young Executive Development Program
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
The ARTBA Transportation Development Foundation (ARTBA-TDF) will conduct its 16th Annual Young Executive Development Pro-gram (YEDP) May 23-26 2011 in Washington DC 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 regula-tory 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 Coalitionrsquos 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 govern-ment transportation agencies and colleges and universities ARTBA membership is not required to participate
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
ELIGIBILITY
APPLICATIONNOMINATION amp SELECTION PROCESSCandidates 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 execu-tive 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 memberadministrator at the university which employs the applicant
Applications must be either mailed to The ARTBA Building 1219 28th Street NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to Jeff Solsby at jsolsbyartbaorg by April 1 2011 The application form is available at wwwartbatdforg
VENUE DATES amp COSTS
The YEDP will be held May 23-26 in Washington DC 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
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Helping Shape Future Transportation Construction Industry Leaders
Major support for the YEDP is provided by Volvo Construction Equipment
A fEw wORDS fROM PROGRAM GRADUATES
ldquoThe 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 programrdquo
ldquoAbsolute eye-opener Great investment of time and moneyrdquo
ldquoYEDP made me aware of [industry government relations] needs and gave me clear direction as to how to con-tribute to our common objectiverdquo
YEDP_2011APP_forTBindd 1 2162011 105612 AM
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
2011 YOUNG ExECUTIVE DEVELOPMENT PROGRAM Deadline April 1 2011
Application can be downloaded wwwartbatdforg
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)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
CommunityService Organization Membership (include offices held and important achievements)
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
Education (start with highest level attained)
________________________________________________________________________________________________
________________________________________________________________________________________________
ProfessionalVocational License _______________________________________________________________________ AcademicProfessionalService 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 NW Washington DC 20007 faxed to 202-289-4435 or e-mailed to jsolsbyartbaorg
School City State Degree Earned Year
School City State Degree Earned Year
Type of License Year Earned
YEDP_2011APP_forTBindd 2 2162011 105612 AM
The prestigious Sheldon G Hayes Award is presentedannually by the National Asphalt Pavement Association(NAPA) to recognize excellence in asphalt pavementconstruction The winning contractors have completedprojects that are deemed superior in terms of quality and smoothness These results can only be achieved byexceptional planning and execution on the part of thecontractor 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 outstandingresults Imagine how they can help your crews earn those bonus dollars
So the question remains is it a coincidence that seven ofthe last eight Sheldon G Hayes Award winners have usedCat Asphalt Pavers Well we canrsquot speak for the winnersBut as they say results donrsquot lie
Caterpillar is the market leader because we offer proventechnology that makes building quality and turning a profiteasier Isnrsquot that what technology is supposed to do Tolearn more about our range of Cat Asphalt Pavers visityour Catreg Dealer today
wwwcatcompaving-solutions
SAFELY HOME EVERYONE EVERYDAY SAFETYCATCOMtrade
DO YOU KNOWSHELDON G HAYES IF NOT LET USINTRODUCE YOU
CAT CATERPILLAR their respective logos ldquoCaterpillar Yellowrdquo and the POWER EDGE tradedress as well as corporate and product identity used herein are trademarks of Caterpillarand may not be used without permission copy 2011 Caterpillar All Rights Reserved
Seven of the last eight winners of the Sheldon G Hayes Award used Catreg Asphalt PaversCoincidence
AP1455-01 SGH 2211 1133 AM Page 1
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201110 wwwartbaorg
presidentrsquosdesk
T Peter RuaneARTBAPresident amp CEO
Truthful Answers to FAQs from the Nationrsquos Capital
ARTBA prides itself on always providing the unvarnished ldquotruthrdquo So as we assess the
prospects and strategies for passing a multi-year federal surface transporta-tion reauthorization bill we must re-main objective and clear-eyed Herein Irsquoll try to debunk some of the myths floating around within our community by answering some frequently asked questions (FAQs)
Question ldquoI read in [fill-in-the-blank newsletter] that reauthorization pros-pects are bleak So why should I even bother to engage in the processrdquo
Answer Unfortunately we live in an era when anyone with an Internet connection and blast e-mail list can fashion themselves as an ldquoinsiderrdquo Many of these folks get their infor-mation third-hand (at best) and have agendas of their own which comes out in their ldquoanalysisrdquo
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 jurisdictionmdashHouse Trans-portation amp Infrastructure Commit-tee Chairman John Mica (R-Fla) and
Senate Environment amp Public Works Committee Chairman Barbara Boxer (D-Calif)mdashhave publicly reaffirmed their respective commitments to get-ting a multi-year bill done in 2011 So now is the time to get involved in the process all the way ndash both to help cre-ate some momentum for a bill and to influence what is in it
Question ldquoSome of the recent reau-thorization proposals in Congress have been troubling Wouldnrsquot we be better off with nothing happening instead of those bad ideas moving forwardrdquo
Answer No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are re-leased nor should we You can be as-sured as always ARTBA will provide the most rigorous analysis of any pro-posed 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 ex-pertise not our political partisanship
However a stalled process in which no billmdashhowever flawedmdashmoves anywhere provides no oppor-
tunity for any of these efforts And itrsquos well-documented that we wonrsquot 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+ per-cent unemployment in the industry or prepare the economy for a more competitive future
So ARTBA says get the process started introduce a bill and letrsquos get to work on it
Question ldquoIrsquom busy running my business Isnrsquot it ARTBArsquos job to visit with Congressrdquo
Answer ARTBA is focused on those 535 US senators and repre-sentatives every day We meet with them and their staff provide authorita-tive data and share information from the industryrsquos standpoint on a continu-ous basis
So ARTBA staff can frame the is-sues 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-
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 11wwwartbaorg
Truthful Answers to FAQs from the Nationrsquos Capital
vestment can make in your areamdashor the catastrophe that cuts will cause Itrsquos easy for a member of Congress to go on a rant about ldquotoo much govern-ment spendingrdquo and budget cutting But letrsquos 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 Thatrsquos how you and your industry colleagues can make a difference
Question ldquoThen what can I do to helprdquo
Answer Get out and meet with your US 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 ARTBArsquos annual Federal Issues Pro-gram and Transportation Construc-tion Coalition Fly-in on May 23-25 in Washington DC 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 coun-try hear briefings from high profile speakers and meet with officials from
federal agencies who shape your busi-ness environment As always it will be a wise investment of your time and moneymdashnever more so than now
ldquoThe truth shall set you freerdquo Donrsquot be misled by the din out there We can pass a good surface transpor-tation reauthorization bill in 2011mdashbut we need your help to do it
Editorrsquos Note Irsquom 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 ldquoTransOvationrdquo 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 ldquoFinding Competitive Advantage in Adversityrdquo The first part of the article can be found in the November-December 2010 issue of ldquoTransportation Builderrdquo magazine More event details will be coming in future issues You can also contact my colleague Jeff Solsby at jsolsbyartbaorg He is managing the event
Beginning on page 10 learn about and review the schedule for the 2011 ARTBA Federal Issues Program (FIP) amp Transportation Construction Coalition Fly-Inmdashone of our most popular annual events As always our yearly ldquoYoung Executive Development Programrdquo which educates the transportation design and construction industryrsquos ldquorising starsrdquo 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 ARTBArsquos expert analysis of the Presidentrsquos FY 2012 transportation budget and highwaytransit reauthorization proposal which you can find on page 26
As always please feel free to contact me by phone (202ndash289ndash4434) or e-mail (jmahoneyartbaorg) with any comments on this issue or ideas for an upcoming issue
Jaime N Mahoney Editor Transportation Builder
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201112 wwwartbaorg
2011 ARTBA Federal Issues Program amp TCC Fly-InProgram of Events amp Hotel Information
May 23-25 bull Mandarin Oriental Hotel
Monday May 23
1100 am ndash 100 pm Executive Committee Council of University Transportation Centers 100 pm ndash 200 pm Transportation Development Foundation Trustees 100 pm ndash 400 pm Contract Administration Committee Meeting with Federal Highway Administration130 pm ndash 330 pm Environmental Committee Meeting with Federal Officials 200 pm ndash 330 pm High Speed Rail Development Council Meeting Division Meetings bull Research amp Education bull Public Private Partnerships230 pm ndash 400 pm Transportation Safety Advisory Council 200 pm ndash 400 pm ARTBA Nominating Committee 330 pm ndash 500 pm Transportation Officials Division 400 pm ndash 430 pm Young Executive Development Program Welcome Briefing400 pm ndash 530 pm Women Leaders in Transportation Design and Construction Council 400 pm ndash 600 pm Council of State Executives Young Executive Leadership Council 600 pm - 900 pm Dinner on your own
Tuesday May 24
730 am ndash 930 am Division Meetings bull Contractors bull Planning amp Design bull Materials amp Services 830 am ndash 930 am Young Executive Development Program Welcome Overview 930 am ndash 945 am Networking Break945 am ndash 1100 am General Session Legislative amp Regulatory Update Transportation Construction Market Report1100 am ndash 1215 pm General Session HighwayTransit Reauthorization Congressional Staff Panel1230 pm ndash 200 pm Transportation Development Foundation Awards Lunch
TCC Washington Fly-In ScheduleTuesday May 24
200 pm ndash 430 pm TCC Legislative Briefing600 pm ndash 730 pm TCC Capitol Hill Reception
Wednesday May 25
700 am ndash 745 am TCC Breakfast800 am ndash 500 pm Congressional Visits
Hotel Information
Make your room reserva-tions directly with the Man-darin Oriental Hotel by calling 8888881778 or 2027876140 Ask for the ARTBA Federal Issues Program rate of $309 per night which is guaranteed through April 22 The Manda-rin Oriental Hotel is located at 1300 Maryland Avenue NE Washington DC 20024
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 13wwwartbaorg
Federal Issues ProgramSponsorship Opportunities amp Benefits
Platinum $10000bull Three complimentary registrationsbull Premier sponsorship of the ARTBA-TDF Awards lunchbull Corporate logo projected on screen during lunch eventbull Full-page ad in event programbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazine
Gold $7500bull Two complimentary registrationsbull Corporate logo projected on screen during an ARTBA General Sessionbull Special recognition signage on sitebull Listing in post-event ldquoTransportation Builderrdquo magazinebull Full-page ad in event program
Silver $5000 bull One complimentary registrationbull Corporate name projected on screen during the ARTBA General Sessionsbull Special recognition signage on sitebull Half-page ad in event program
Bronze $2500 bull One complimentary registrationbull 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 AmexCardholders Name ______________________________________________________________Card _______________________________________________________________________Exp Date _____________________________________________________________________Cardholders Signature ___________________________________________________________
To become a sponsor please fax this form to ARTBArsquos Ed Tarrant at 202-289-4435 For any additional sponsorship questions contact Ed at 202-289-4434 ext 204
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 15wwwartbaorg
Save the date2011 ARTBA FedeRAl Issues PRogRAm
w w w a r t b a o r g
May 23 - 24 ARTBA Federal Issues Program May 24 - 25 TCC Fly-InMandarin Oriental Washington DC wwwmandarinorientalcomwashington8888881778
Be an industry leader amp 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 ofexisting and proposed regulations
Get in-depth legislative economic amp market reports from ARTBA staff amp industry experts
amp Transportation Construction Coalition Fly-In
2011 FIP Save the Dateindd 1 1192010 124615 PM
ARTBA Foundation News
From Hall of Fame to Industry Awards ARTBA Foundation Showcases Your Success Stories
If you are looking for ways to sa-lute groundbreaking innovators support education for the children of our industryrsquos fallen workers
promote project environmental suc-cess or share positive community rela-tions programs the solution is as easy as T-D-F ARTBArsquos Transportation Development Foundation (TDF) has a host of initiatives that can help you spotlight your firmrsquos good work and earn widespread attention
PRIDE AwardsNow in their 12th year the PRIDE
Awards honor excellence in commu-nity relations and public education for programs that ldquoenhance the image of the US transportation construction industryrdquo Public and private sector groups are recognized Application deadline March 11
Highway Worker ScholarshipThe ldquoLanford Family Highway
Worker Memorial Scholarship Pro-gramrdquo 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 $5000 and the fund
is supported annually by contributions from industry and labor groups firms and executives Application deadline April 1
Environmental ExcellenceThe ldquoGlobe Awardsrdquo recognize
1) private-sector firms and public-sec-tor transportation agencies that do an outstanding job in protecting andor enhancing the natural environment in the planning design and construction of US transportation infrastructure projects and 2) transportation con-struction-related product manufactur-ers and material suppliers that utilize exemplary environmental processes to protect and enhance the natural environment Application deadline April 1
Hall of FameLaunched in 2010 the Transpor-
tation Development ldquoHall of Famerdquomdashthe highest place of honor for industry professionalsmdashwas created to recog-nize individuals and families from the public and private sectors who have made extraordinary contributions to US transportation development or demonstrated exceptional leadership over a lifetime
Nominations for 2011 are ac-cepted in two categories ldquoIndustry Innovatorsrdquo and ldquoIndustry Leadersrdquo
(individuals or families) and are due by Wednesday June 1 Inductees for the 2010 and 2011 classes will be honored September 7 during ART-BArsquos ldquoTransOvationrdquo Workshop to be held in Landsdowne Va
Information about the Hall and the scholarship and awards programs are available at wwwartbatdforg or by contacting ARTBArsquos Holly Bolton at 202-289-4434 or hboltonartbaorg
Nominate TodayThese Foundation programs are
designed to help your firm earn the national recognition it deserves and in turn allow ARTBA to share your ldquosuc-cess storiesrdquo 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 di-rector of the ARTBA Transportation Development Foundation and senior vice president of communications and marketing He can be reached at mjeanneretartbaorg
By Matt Jeanneret
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201116 wwwartbaorg
A-14
Feature Story
By Vincent Jue
High Speed Rail Consider the Underground
In January 2010 US Department of Transportation awarded $8 bil-lion in stimulus funding from the
American Recovery and Reinvestment Act to multiple states to develop high-speed rail service While the Novem-ber 2010 elections may have put high-speed rail projects in jeopardy some states as of October 2010 California had secured approximately $43 bil-lion to fund construction of a system between northern and southern Cali-fornia
California is now in the prelimi-nary engineering and permitting phas-es of the rail line Construction might seem off in the distant future but itrsquos not too early to consider the big picturemdashand how construction might play out when the system is eventu-ally built Why not take a cue from a nearly identical system that was re-cently completed in Italy
La Dolce Vita ItaliaThe 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 in-novation Just one year ago the new Alta Velocitagrave (AV) line opened from Turin near the French border to Sal-erno 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 com-plex engineering challengesmdashand ma-jor construction opportunities
Italian amp Californian Similarities
Letrsquos see how those issues in Italy played out when it came to construct-ing the AV linemdashand 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 iso-lated 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 momen-tum of a fully loaded Airbus A380 at takeoff Deep foundations are manda-tory 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 US and a dedicated robust funding source outside of the federal Highway Trust Fund The council is planning several key meet-ings 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 amp Pro-motion Council and the Ports amp Waterways Council during CONEXPO-CONAGG 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 ARTBArsquos Larry Russell at lrussellartbaorg to learn more about how you can get involved with the HSRDC
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 17wwwartbaorg
Design-Build
the trainrsquos momentum and to maintain alignment and control deflection
Third Californiarsquos high speed rail will cross a number of major rivers and streams as they flow from the Si-erras into the Central Valley Ditto in Italy where special piers and cof-ferdams were required to resist scour concerns
Fourth sound and vibration is-sues 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 con-structed on the 1000-km (620-mile) AV line In urban areas and on el-evated structures and embankments soundwalls were used due to space constraints In the countryside earth-en 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
visual impacts and to reduce noise and vibration
And finally in urban areas con-struction of new stations tunnels and track structures will need to be integrated into the existing built envi-ronment with confined rights-of-way without disturbing existing structures
All Routes Lead UndergroundMore than 20 percent of the Ital-
ian high speed rail network costs were spent on ground engineering includ-ing 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 proj-ect will also need to apply innovative ground engineering solutions
For example this could include deep foundations along very long seg-ments of soundwalls It could include jet grouting for ground improvement to soft soils below the rail embank-ments It could include large-diameter
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 techniquesmdashwith the right equipment high production rates and adequate capacitymdashcan make or break a project Our recommenda-tion 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 vjuechampion-equipmentcom
Stabilizing one of many tunnels on the high speed rail line between Bologna and Florence Italy
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
A-16
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 19wwwartbaorg
For more information and sponsorship opportunities contact ARTBA Staff Attorney Allison Wenograd at awenogradartbaorg or 2022894434
April 6 - 7 2011 | The ArTBA Building WAshingTon dC
Who should Attend
in-house counsel raquo
Company leadershipproject managers raquo
hr managers raquo
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
ARTBArsquos 3rd Annual
Transportation Construction Law amp Regulatory Forum
Public-Private Partnerships
P3 Lessons from EuropeBy Robert Bain
Fifty semi-structured interviews were conducted with senior professionals involved in public-
private partnerships (P3s) across Eu-rope 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 ldquolessons learnedrdquo soon emerged These lessons derive not from theory or any particular political ideology or from judiciously selected case-studiesmdashoften the case with P3 ldquoresearchrdquomdashbut from the collective experience of seasoned practitioners who have been working on P3s in var-ious roles for nearly two decades
Space constraints limit the detail that can be reported here For the full survey results see my website at wwwrobbaincom
P3s amp RailThe European experience of P3s
in the rail sectormdashon high speed rail projects airport links and underground metrosmdashis one of mixed success A number of high-profile projects have encountered problems or have failed to deliver the expected benefits In-terviewees felt that rail projects sim-ply incorporated more risk than other asset classes not all of which can be
anticipated at financial closeRisks that have beset the Europe-
an P3 rail sector have resulted from the sheer size (capital intensity) and com-plexity (technical intensity) of some deals Large projects ($1 billion+) may be attractive to a restricted number of biddersmdashlimiting competitionmdashand questions were asked about the abil-ity 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 par-ties that rail projects entailmdashover which the private sector partner may have little controlmdashand the difficul-ties associated with accurate demand projections for services or passengers High speed rail in particular requires low gradients leading to more struc-tures (bridges and tunnelsmdashwith in-creased geological risk exposure) and involves stringent engineering toler-ances with low error margins
In a number of jurisdictions the approvals processes associated with railmdashfor licences consents and per-mitsmdashwere 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 operat-ing practices fighting against what it re-gards as creeping privatization Finally political risk loomed large as these projects feature prominently on politi-ciansrsquo radar screensmdashsuch is their size visibility and importance and the fact that they typically require sizeable fi-nancial commitments from public sec-tor budgets over many years
P3s amp RoadsRoad projects on the other handmdash
highways bridges and tunnelsmdashwere reported to ldquositrdquo much more comfort-ably with the P3 procurement philoso-
Interviewees felt that rail projects simply incorpo-rated more risk than other asset classes not all of which can be anticipated at financial close
(Continued on page 20)
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201120 wwwartbaorg
A-18
P3s Work Best Whenbull Projects have a strong policy rationale retain characteristics of essentiality and enjoy broad public support and politi-
cal commitment
bull Service outputs can be clearly defined and specified contractually
bull The integration of various project and financing contracts makes sense
bull They are applied in mature stable sectors where (a) the pace of development is gradual and (b) service delivery requirements and usage are predictable
bull Real competitive tension can be maintained throughout the procurement phase
bull Transaction structures avoid over-sophistication and projects retain sufficient financial (and contractual) flexibility to accommodate departures from expectations
bull Applied to straightforward assets of a modest size (P3s sit less comfortably with highly complex mega-projects involv-ing major technical challenges)
bull Risk allocation appropriately reflects stakeholdersrsquo capabilities and capacity
bull Private finance (real lsquohurt moneyrsquo) is at risk
bull 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)
bull The procuring agency commits to a long-term active partnership is commercially literate has strong negotiating skills and responsive decision-making processes
bull The procuring agency selects a sustainable private sector partner not necessarily the cheapest provider
bull Used for separate stand-alone projects with minimal interface risks
WarningA project that does not make sensemdashor a contract that cannot be let to the market on a sensible basis under a
traditional procurement modelmdashis unlikely to be transformed by making it a public-private partnership
phy characteristics and requirements Interviewees reported positive ex-periences with on-time and within-budget asset delivery There were clear designbuild (and buildoperate) 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 classmdashfactors 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 intervie-wees highlighted the benefits of P3 roads in terms of ring-fencing future
maintenance expenditure The cor-ollary 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 aspira-tions This was undoubtedly one of the reasons why the remaining Lon-don Underground P3 was recently bought-out and brought back under public sector control
A variety of payment mechanisms are employed on P3 roads through-out 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 un-derperforming some by as much as 50 percent Assessing willingness-to-pay appeared to be challenging for traffic advisors in both developed and tran-sitioning economies especially when toll tariffs were relatively expensive However availability and performance-based payment mechanismsmdashand shadow tollsmdashincurred problems of their own Portugal had experienced difficulty servicing the aggregate state payments due to its P3 road conces-sionaires The country is currently renegotiating contracts and switching some of its roads to user-paid tolls in an effort to reduce future state obli-gations Concerns were expressed by interviewees that extended use of
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 21wwwartbaorg
Interviewees reported positive experiences with on-time and within-budget asset delivery when re-lated to road projects There were clear designbuild (and buildoperate) synergies to be exploited and good examples of private sector innovation with construction design techniques and materials were noted
payment mechanisms which simply re-profiled government commitments could cause similar long-term afford-ability 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 coun-triesrsquo P3 programs and this trend looks set to continue
Closing CommentsThroughout the interviews com-
ments were made about the strengths and weaknesses of P3s in different cir-cumstances The key lessons learned from the survey are summarized in the panel that accompanies this article
Other frequent observations in-cluded the fact that P3s are not just about procurementmdashtheyrsquore about long-term relationships active partner-ships between the public and private sectors And the partnership model continues to evolve as different coun-tries 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 dis-tinct 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 artifi-cially carved-out simply to make them ldquoP3-ablerdquo O
Robert Bain is the head of his own inde-pendent consultancy United Kingdom-based RBconsult conducting infrastructure investment analysis for banks institutional investors and infrastructure funds He is the author of several books including ldquoToll Road Traffic amp Revenue Forecasts An Inter-preterrsquos Guiderdquo available for purchase at wwwartbastoreorg He can be reach at inforobbaincom
2011 ARTBA Media Kit Now Available
Featuring advertising options for
bullldquoTransportation Builderrdquo magazine
bullTransportation Officials amp Engineers Database
bull2012 Membership Directory amp Buyersrsquo Guide
Also new advertising options for
bullDigital ldquoTransportation Builderrdquo magazinebullDigital ldquoWashington NewslinerdquobullWeb advertising
View and download at wwwartbaorg
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
A-20
TransOvation 2011Save the dateSEPTEMBER 7-9Lansdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TRANSOVATION 2011 FOSTERING INNOVATION IN TRANSPORTATION DESIGN amp CONSTRUCTION
TransOvationad_colorindd 1 312011 100142 AM
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 23wwwartbaorg
A-21
Innovation
Finding Competitive Advantage in Adversity
Part Two
By Bhaskar Chakravorti
TransOvation 2011mdashFostering Innovation in Transportation Design and Construction
One of ARTBArsquos top goals in the year ahead is foster-ing innovation in our marketplacemdashnot just showcasing it but incubating ithellipteaching our members and future leaders how they can innovate in their own work Our TransOvation workshop will be held September 7-9 at the Landsdowne Resort near Dulles Airport in Virginia This ldquocanrsquot-miss programrdquo will help arm industry leaders with the tools and skills they need to innovate their way to success Itrsquos an opportunity to hear from leading innovators to showcase your own innova-tions and to learn new practices and processes that you can apply in your firm and on your projects
Wersquore also working to better share stories of our industryrsquos 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 ldquoNew York Timesrdquo or seen ldquoUSA Todayrsquosrdquo 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 show-case their own innovations Wersquoll be glad to showcase your results here in ldquoTransportation Builderrdquo and online If yoursquod 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 jsolsbyartbaorg or 202-289-4434 O
By Jeff Solsby
Opportunity 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 econ-omize 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 characteris-tics that according to Trendwatch-ingcom define future consumer priorities may be the tiny cracks to look for affordability simplicitycon-venience 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 Pow-ell 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 motherrsquos bedside The
(Continued on page 24)
structural obstacle was that obstetri-cians are usually on the movemdashfrom the office to the ER to various hospi-talsmdashmaking continuous bedside cov-erage cost-prohibitive
When software engineer Trey Moore asked Powell to wish for his
fantasy smartphone application Pow-ell realized that being able to see the babyrsquos heart tracing and the motherrsquos contractions anytime anywhere would be a huge help to him and his staff Powell and Moore figured that avoid-ing even a single lawsuit with a me-
TransOvation 2011Save the dateSepTember 7-9Landsdowne Resort Leesburg Va wwwlansdowneresortcom
What makes MacArthur ldquoGeniusrdquo Award Winner Ted Zoli amp 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 2011mdashFostering Innovation in Transportation Design amp Construction is a first of itrsquos kind edu-cational workshop designed to celebrate and foster innovation in our field And it is designed to appeal specifi-cally to young executivesmdashleaders 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 industryrsquos best innovators
For sponsorship presentation or program information contact ARTBArsquos Jim Colleton at 202-289-4434 or by email at jcolletonartbaorg
TrANSOVATION 2011 FOSTerINg INNOVATION IN TrANSpOrTATION DeSIgN amp CONSTruCTION
TransOvationad_colorindd 1 242011 33537 PM
Editorrsquos Note In the last issue of ldquoTransportation Builderrdquo Harvardrsquos 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 ldquopublications amp advertisingrdquo section of wwwartbaorg
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201124 wwwartbaorg
dian $25 million award could make the investment worthwhile to a health care provider Together they found-ed AirStrip Technologies whose first product was a smartphone app called ldquoAirStrip OBrdquo The app was easy to install on devices that physicians were already carrying required very little be-havioral change from users and would be offered to hospitals on a software-as-a-service model thereby minimizing their monetary commitment In short Powell had found a small solution to a very big problem
ldquoAirStrip OBrdquo 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 ldquorock star cardiologistrdquo Eric Topol and David Pogue technology colum-nist for the ldquoNew York Timesrdquo
Small innovations such as ldquoAirStrip OBrdquo aim for major breakthroughs in contexts of extreme adversity They are not designed simply to make incre-mental change and are proving to be part of a broad global trend We now have for example cheap and space-efficient sachet packaging of consumer goods in developing markets microfi-nance or software-as-a-service to fit limited business budgets smartphone apps and Twitter for mobile consum-ers with fragmented attention capac-ity and frugally engineered products (from vehicles to appliances to health care items) that ensure affordability and access in the fastest-growing mar-kets which still face much adversity
Opportunity 4 Think Platform Not Just Product
In general the underlying factors that constrain one situation of adver-sity also constrain others This offers
an opportunity to invest in a meta-so-lution that can address several unmet needs simultaneously either in multi-ple market segments or various prod-uct markets The multifaceted char-acter of the opportunity also hedges the entrepreneurrsquos risk and helps the venture grow beyond the initial point of entry Clearly entrepreneurs can expect varying levels of success but the broader the venturersquos reach is the greater the value to be unlocked The profit potential comes from the ca-pacity to enhance the business model at three possible leverage points cus-tomer value cost management and growth-vector creation
Fred Khosravi and Amar Sawh-ney are an excellent example of a team who thought creatively about platform Described by ldquoIn Vivordquo as the ldquodynamic device development
duordquo 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 ldquosecret saucerdquo that would be re-sponsible 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 hydro-gel technology foresaw many applica-tions each solving a dilemma for phy-sicians who performed complex or minimally invasive surgeries in medical specialties as varied as cardiology gy-necology neurology and ophthalmol-
Shouldnrsquot You
for the Construction Industry
InnovativeSoftwarewwwHCSScom 800-683-3196
SoftwareEstimatinguse
ofthe22 Top 25
Heavy Civil Contractors
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 25wwwartbaorg
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 poten-tial for improving surgical procedures Hydrogel technology was a true plat-form that could be applied to many parts of the human anatomy and therefore in multiple surgical ldquomar-ketsrdquo 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 howev-er and focused on keeping the plat-formmdashand a stream of applications to address multiple problemsmdashalive 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 hy-drogel 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 target-ing different markets but centered on a common core technology
The notion of platforms need not be limited though to technologies and
processes Consider the case of the performance act ldquoBlue Man Grouprdquo As artists they found the 1980s to be a particularly depressing decade In New York Cityrsquos Central Park in 1988 they performed ldquoFuneral for the lsquo80srdquo 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 smoth-ered 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 in-stitution 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 busi-ness ldquoto inspire creativity and connect people with their primal exuberancerdquo
A New Twist on Adverse Selection
To ground your thinking about the benefits that adversity can offer go back to Michael E Porter in ldquoThe Competi-tive Advantage of Nationsrdquo ldquoCompeti-tive advantage emerges from pressure challenge and adversity rarely from an easy liferdquo 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
are discovering their unintended con-sequences 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 in-dustries are now in search of radically new business models to avoid obso-lescence Widespread discovery and use of nonrenewable resources are revealing their true environmental and geopolitical consequences
Health care innovations bred unsustainable cost structures demo-graphic imbalances and limitations in pharmaceutical and health care deliv-ery 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 bub-bles 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 ldquonew nor-malrdquo is not short on adversity
None of this will weaken entre-preneurship and innovation The ldquonew abnormalsrdquomdashthe entrepreneurs who survivemdashwill 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 ifmdashas entrepreneurs managers and in-vestorsmdashwe were to let such an abun-dance of serious crises go to waste O
Bhaskar Chakravorti is a partner at McKinsey amp Company and a distinguished scholar at MITrsquos Legatum Center for Development and Entrepreneurship He recently joined the faculty of Harvard Business School
ldquoTo ground your thinking about the benefits that adversity can offer go back to Michael E Porter in lsquoThe Competitive Advantage of Nationsrsquo lsquoCompetitive advantage emerges from pressure challenge and adversity rarely from an easy lifersquo Necessity coupled with four key opportunities can indeed be the mother of some serious inventionsrdquo
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201126 wwwartbaorg
Legislative News
$556 Billion Surface Transportation Reauthorization Plan Outlined in FY 2012 Obama BudgetBy Bill Toohey Bill Buechner Dean Franks Hank Webster
The 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 programmdashone that would radically change the programrsquos scope and structure
Unfortunately the budget did not address the key questionmdashhow the proposed six-year program would be funded
Nonetheless on a positive note the Obama plan does provide the grist necessary to begin a legisla-tive debate with the Congress on the
future direction of federal investments in transportation The Obama surface transportation program reauthoriza-tion plan would include
New Trust FundIt would create a new ldquoTrans-
portation Trust Fundrdquo replacing the Highway Trust Fund and establish four accountsmdashone for highways one for transit one for high-speed rail and one for the National Infrastructure Bank
Off-BudgetThe transportation programs
would be moved ldquooff-budgetrdquo and become ldquomandatory spendingrdquo with spending strictly aligned with revenues into the trust fund
Passenger RailFor 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 autho-rization This funding would include ldquoHigh Speed Railrdquo initiatives but the budget made clear that the Adminis-trationrsquos plan to connect ldquo80 percent of Americans with access to High Speed Railrdquo means largely ldquohigher than current speedrdquo Amtrak not ldquobul-let trainrdquo service
Redirected Highway ProgramMore than four dozen existing
federal highway program categories would be shrunk to five with six-year funding of $3328 billion 602 percent of the six-year authorization total Of this $257 billion dollars would be di-rected to investments in an enlarged 220000-mile ldquoNational Highway Sys-tem (NHS)rdquo The NHS investment would be split nearly in halfmdashone for a ldquofix-it-firstrdquo program to rehab exist-ing NHS road surfaces and bridges the other for a ldquoflexiblerdquo program allow-ing states to direct funds to projects on any eligible federal-aid road The remaining 20-some percent funding in the Highway Program would be di-rected to safety ($17 billion) a ldquolivable communitiesrdquo program ($28 billion) federal lands tribal roads emergency relief and workforce development ($10 billion) and research ($4 billion)
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 27wwwartbaorg
An additional $17 billion would be available for a new ldquoTransportation Leadership Awardsrdquo program of US DOT directed earmarks
Transit InvestmentsAlmost 22 percent of the six-year
programrsquos 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 $206 billion A new ldquoBus amp Rail State of Good Repair Programrdquo would be created and funded with $355 bil-lion to repair and purchase buses rail cars and rail transit stations Transit research operations and safety pro-grams would receive just over $2
billion A new ldquoTransit Leadership Awardrdquo program would provide an additional $147 billion for US DOT earmarks over six-years
National ldquoI-BankrdquoThe authorization would create a
ldquoNational Infrastructure Bankrdquo oper-ating under the umbrella of the US 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 ldquoJump StartrdquoUnder the proposal transporta-
tion programs would receive a one-time $50 billion jump start elevating FY 2012 investments to $128 billion
for highway transit rail and airport ac-tivities This would be $53 billion more than was authorized for FY 2010
Further details on the Adminis-trationrsquos proposal for reauthorization and a detailed analysis of its FY 2012 transportation budget can be accessed at the ldquogovernment affairsrdquo section of wwwartbaorg O
The budget stories were written by a team that includes ARTBA Executive Vice President Bill Toohey ARTBA Vice President of Economics amp Research Bill Buechner ARTBA Director of Congres-sional Affairs Dean Franks and ARTBA P3 Managing Director Hank Webster They can be reached at 2022894434
Bold Transportation Proposals in Presidentrsquos 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 ldquosound multi-year investmentsrdquo in roads railways and runways The Presidentrsquos budget lacked details on project selection requirements for the ldquoup-frontrdquo investment It also did not provide any recommendations for generating new revenues to support the increased investments
More than half of the $50 billion ldquoup frontrdquo investment would boost funding for the federal highway program to a record $705 billion a 70 percent increase over the amount enacted for FY 2010
The rest of the ldquoeconomic boostrdquo would provide for the following program levels
bull $224 billion for public transportation in FY 2012 up 85 percent from $121 billion in FY 2010
bull $83 billion for passenger rail including investments in high-speed rail up 93 percent from $43 billion in FY 2010
bull $187 billion for the Federal Aviation Administration up 19 percent from $157 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
bull $50 billion for the proposed National Infrastructure Bank
Although the Presidentrsquos 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 ap-propriations bill
mdashmdashmdashmdashmdash1 Congress has not yet enacted final appropriations bills for FY 2011 so all comparisons are to amounts enacted for FY 2010
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201128 wwwartbaorg
Economic News
By Alison Black
The Story Behind a Decade of Market Insights from Transportation Contractors
Ten years ago ARTBArsquos Eco-nomics amp Research team in-troduced a new product that
was designed to engage its contractor members and gain a ldquoreal worldrdquo per-spective on the market that was not available anywhere else During this time you have responded Nearly 1500 ARTBA member companies representing all 50 states have partici-pated in what is commonly known to-day as the ldquoTransportation Construc-tion Industry Conditions Surveyrdquo
The survey responses have helped ARTBA better understand market trends and allowed us to aggregate
the results in a format that we share with association members and indus-try analysts as well as with the Execu-tive Branch officials and members of Congress and their staffs who are in-volved in transportation policymaking In short the survey helps ARTBA be even more effective in advancing the industryrsquos agenda
13 Simple QuestionsEach 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
well as historical results for the indus-try as a whole Respondents also have the opportunity to share their own commentsmdashwhich provides a glimpse into what contractors are dealing with in their day-to-day businesses
ldquoThe Survey SaysrdquoThe survey results helped predict
the rampant increase in material prices several years ago and the current re-cession 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
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 29wwwartbaorg
By Alison Black
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 oper-ating at 75 percent capacity or below for the past two years This means they have the ability to absorb addi-tional 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 ca-pacitymdashthe current high levels are a reflection of the difficult economy
Looking Forward in 2011 and Beyond
Whatrsquos ahead for 2011 Nearly half of contractors who participated in the most recent ARTBA survey are
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Construction Work Performed Net Rising Index 1Q 2001 to 4Q 2010
The net rising index is the difference between the of respondents that said the amount of work performed was up compared to the same quarter last year and the that said it was down - the index measures overall market movement
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net
Ris
ing
Inde
x
-5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Percent of Respondents Working At Below 75 of Capacity1Q 2001 to 4Q 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
enta
ge o
f Res
pond
nts
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 quar-ters but there have been signs of im-provement 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 sur-face transportation program and the slowdown in state and local spending One contractor who is a fourth gen-eration 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
the downturn in general construction Most contractors share ARTBArsquos view that completion of a robust multi-year highway and transit authorization bill is critical to the marketrsquos future Rest as-sured this legislation remains ARTBArsquos top priority in the year ahead
Participate in the Next SurveyWe 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 im-prove as we have more respondents Our first quarter 2011 survey will be available March 18mdashlook for it on the homepage of wwwartbaorg and in the ldquoWashington Newslinerdquo
Alison Black is ARTBA vice president of policy senior economist and manag-ing director of the Research and Edu-cation division She can be reached at ablackartbaorg
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
Thatrsquos 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 worldrsquos largest cyber library of educational webinars best practices laws and regulations statistics training information and more is available at wwwworkzonesafetyorg
Highway contractor Bill Cox wants all his employees on the road to safety
Use IthellipSave Lives
Information provided by the National Work Zone Safety Information Clearinghouse award DTFH61-06-H-00015 does not necessarily reflect the views of the US Federal Highway Administration (FHWA) or the American Road amp 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
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
PRODUCT OF THE MONTH
To Order Call 1-888-821-9653 or Visit wwwartbastoreorg
Order Today
To order visit wwwartbastoreorg 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 NW Washington DC 20007
_____Quantity _____ Work Zone Awareness Safety Ribbons $15sheet of 15 _____Quantity _____ Work Zone Awareness Safety Wristbands $4020 wristbands
Name______________________________________________________Title______________________________
Company_____________________________________________________________________________________
Address______________________________________________________CityStateZip_____________________
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 95 for shipping and handling)
ARTBA Work Zone Safety Awareness Products
April 4-8 is National Work Zone Awareness Week In preparation the American Road amp Transportation Builders Associa-tion 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 RibbonsHelp promote safety and support the ARTBA Foundationrsquos ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo 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 WristbandsHelp promote safety and support the ldquoLanford Family Highway Worker Memorial Scholarship Fundrdquo with Work Zone Awareness Safety Wristbands Lance Arm-strongrsquos yellow ldquoLive Strongrdquo 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
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201132 wwwartbaorg
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
ARTBA Leaders
In MemoriamPast ARTBA Chairman Richard Stander Leaves Enduring Legacy
It is with great sadness that ARTBA shares the February 4 passing of an industry titanmdash1978 ARTBA
Chairman Dick Stander Sr the retired chairman of Mansfield Asphalt Paving Company in Ohio Dick a registered engineer and life-long ldquostudentrdquo 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 re-search that led to a new type of float-ing bridge to accommodate larger and heavier armored vehicles After the war Dick built the Mansfield Asphalt Paving into one of Ohiorsquos leading con-tractors and was an early adopter of automatic paver screeds pneumatic and vibratory rollers and state-of-the-art asphalt plant production He sold the firm in 1988
Early InvolvementldquoMy first recollection of ARTBA
was when my father Carl Stander went up to the [associationrsquos] Road Show in Cleveland in 1927 or 1928 and bought a concrete mixerrdquo Dick said in an ARTBA 100th anniversary publication in 2002 ldquoThat 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 Ohiordquo
Dickrsquos first personal involvement with ARTBA was at the 1948 Road Show in Chicago at Soldier Field ldquoI
took a train up there and met a num-ber of peoplerdquo he said ldquoI followed up by going to an ARTBA annual meeting a few years after thatrdquo
As a result Dick became a distin-guished ARTBA leader for the next 50+ years In 2004 he was named one of the ldquoAmericarsquos Top 100 Pri-vate Sector Transportation Design amp Construction Professionals of the 20th Centuryrdquo by the ARTBA Transporta-tion Development Foundation
A Key PlayerIn addition to serving as ARTBA
chairman he was a key player on the associationrsquos 100th Anniversary Com-mittee and helped develop a multi-million 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 Con-gress at the Ronald Reagan Building in Washington DC 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 ARTBArsquos state chapter affiliatemdashthe Ohio Con-tractors 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
Dick was the 2004 winner of the George S Bartlett Award 1995 re-cipient of the ldquoARTBA Awardrdquo the associationrsquos highest honor ARTBArsquos ldquoNello L Teer Jr Contractors Divi-sion Award and the 1986 CIT GroupEquipment Finance ldquoRebuilding Amer-ica Awardrdquo
From 1950-2002 he attended every annual meeting of the Trans-portation 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 Dickrsquos memory be made to help the Engineering Support Fund at The Ohio State University Mansfield De-velopment Office 1760 University Drive Mansfield Ohio 44906 or at wwwgivetoosuedu using fund num-ber 313576 O
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
The systems The parts and add-ons The instrumentation New technologies are making equipment greener safer and more precise than ever Tackle your next tough job with the newest products services and know-howmdashonly at CONEXPO-CONAGG 2011
Wersquore talking sunny Las Vegas in March Register today wwwconexpoconaggcom
Sponsored by the Association of Equipment Manufacturers National Ready Mixed Concrete Association National Stone Sand amp Gravel Association and Associated General Contractors of America
MARCH 22-26 LAS VEGAS USA
Co-locatedwith
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201134 wwwartbaorg
Gannett Fleming Celebrates Anniversary Milestone
Gannett Fleming an international planning design and construction management firm celebrated its 95th anniversary in 2010 Founded on Au-gust 1 1915 the firm has grown from a two-person office in Harrisburg Pa that specialized in water resources to an international ISO 90012008 Certi-fied company with more than 2100 professionals
The firmrsquos planners engineers de-signers construction managers infor-mation technology specialists program managers and other professionals fur-nish professional services from more than 60 offices worldwide Since its founding the firm has completed proj-ects in every US state and more than 50 countries
Gannett Flemingrsquos highway prac-tice boasts more than 200 profession-als in 17 offices nationwide and has demonstrated leadership in the full ar-ray of highway engineering and design services The firm has completed loca-tion studies and preliminary design for more than 1500 miles of multilane and split-level roadways for interstate high-ways primary highways toll roads tra-versing mountains coastal areas mid-western plains and wetlands as well as final design of more than 1000 miles of multilevel and divided highways in both rural and urban locations
It is consistently ranked among the countryrsquos top engineering firms as demonstrated by these 2010 rankings by ldquoEngineering News-Recordrdquo based on 2009 revenues Gannett Fleming
ARTBA MEMBER amp STAFF NEWS
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 clientsrsquo projects are also recognized with both regional and national awards
In addition Gannett Fleming is committed to incorporating context-sensitive solutions LEEDreg-recognized initiatives and sustainable designs into its projects Its sustainable techniques include addressing congestion with in-novative traffic controls utilizing com-pensatory mitigation techniques and recycled materials incorporating in-novative rehabilitation techniques and mitigating roadway impacts with water-shed-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 amp 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 or-ganization that administers an independent third party ce r t i f i c a t ion program and tests a broad range of safety and protective
products used by workers through-out the materials construction and transportation sectors Its board of directors is comprised of executives
Brad Sant
representing firms including Bechtel the Maryland Fire and Rescue Institute Mine Safety Appliances Company and the International Brotherhood of Elec-trical 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 join-ing the association he served as the director of hazardous materials train-ing 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 BA degrees in Political Science and Spanish and holds a law degree from Georgetown University
ARTBA Helps Educate State Legislators on Attracting Pri-vate Financing for Transporta-tion Projects
With transportation infrastructure needs across the nation dwarfing avail-able 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 myri-ad complex financing options available however and their policy implications is not an easy task
To help state legislators navi-gate the P3 field in partnership with ARTBA the National Conference of State Legislatures (NCSL) Foundation
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 2011 35wwwartbaorg
GA amp FC Wagman Voted Best Places to Work in PA for 6th Time
GA amp FC Wagman Inc was named among the ldquoBest Places to Work in PArdquo in the large-sized company catego-ry 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 GA amp FC Wagman Inc made the list The com-panyrsquos 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 employ-ees 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 employ-ees 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 em-ployees GA amp FC Wagman also hosted a ldquored carpetrdquo themed event in May to celebrate successes and accomplishments with all employees and their spouses
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 lo-cal 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 com-mittee of state legislators and experts in the transportation financing arena is now being distributed As a next step ARTBArsquos P3 members and staff will be working with the NCSL to con-duct webinars on the subject as well as workshops held in state capitols
The NCSL resource guide is avail-able on wwwartbaorg
ARTBArsquos Forsythe Promoted to VP of Finance
Michael Forsythe has been pro-moted to ARTBA vice president of finance
Forsythe a certified public ac-countant leads all association account-ing internalexternal audit human re-source management budgeting and financial reporting activities He also has primary responsibility for financial administration of several federal gov-
ernment contracts operated by ART-BArsquos Transporta-tion Development Foundation
Forsythe was originally hired as a staff accountant in October 2001 and spent five years with the associa-tion During this
time he assumed increasing levels of responsibility and was promoted to accounting manager controller and di-rector of finance He rejoined ARTBA in 2010
Previously Forsythe was the chief financial officer for Richmond Va-based NXL a professional construc-tion management and surveying firm specializing in transportation projects He established and maintained the companyrsquos accounting principles prac-tices procedures and initiatives and was also responsible for reporting the firmrsquos financial performance to senior executives
He also worked as an agent for the Internal Revenue Servicersquos Large and Mid-Size Business Division where he conducted examinations of returns
filed by businesses corporations and organizations He developed an ex-pertise 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 public-ly-traded real estate investment trust and Verestar Corporation an interna-tional telecommunications company
A native of the Washington DC area he earned an MBA from Vir-ginia Commonwealth University and a bachelorrsquos degree in accounting from York College of Pennsylvania O
Mike Forsythe
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
TransportationBuilder January-February 201136 wwwartbaorg
AEM CORNER
Americarsquos Equipment Manufacturers Call for Immediate Bipartisan Action
Association of Equipment Manu-facturers (AEM) President Dennis Slater issued the following statement in response to President Obamarsquos State of the Union address
ldquoThe State of the Union address was the first in more than a decade to address Americarsquos broken transporta-
tion system To compete globally Americarsquos farm-ers and manu-facturers need the White House and Congress to cooperate on new policies that repair and modernize trans-portation infra-
structuremdashan issue American voters agree is an essential investment in our country and an immediate means to job creation
ldquoThe stark reality of the US econ-omy is that it cannot survive without a thriving agriculture and manufacturing base Our nationrsquos infrastructure has been deteriorating for decades and is a roadblock to commerce that hurts Americarsquos farmers and manufacturers The need to repair and modernize the nationrsquos roads is urgent AEM will hold President Obama accountable to and looks forward to working with him to achieve his promise of redou-bling the efforts to rebuild our nationrsquos infrastructure and lsquoput Americans to work repairing crumbling roads and bridgesrsquo We support the presidentrsquos proposal to lsquomake sure this is fully paid for attract private investment and pick projects based on whatrsquos best for the economy not politiciansrsquo
ldquoAfter urgently making the case for years that rebuilding and modern-izing Americarsquos infrastructure for the 21st century will create jobs and serve as a crucial investment in our global competitiveness Americarsquos manufac-turers 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 bridgesrdquo
Caterpillar Inc Supports Regional Rallies of AEMrsquos 2011 Construction Challenge
Caterpillar Inc was a major spon-sor of the 2011 AEM Construction Challenge presented by Volvo Con-struction 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 oppor-tunity to advance to the final competi-tion 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 100000-plus audience at CONEXPO-CONAGG to be held March 22-26 in Las Vegas Nev
ldquoCaterpillar is proud to support AEMrsquos Construction Challenge again this yearrdquo said Tana Utley chief tech-nology officer of Caterpillar Inc ldquoThe 2011 projectsmdashtransportation and water infrastructure developmentmdash
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 construc-tion and engineering than to provide them with hands-on experiencerdquo
Since its inception the AEM Con-struction Challenge has directly en-gaged over 10000 middle and high school students across North Ameri-ca 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 con-struction career
For the Challenge AEM partners with the global creativity organization Destination ImagiNation (DI) known for programs that foster creative prob-lem solving through hands-on team-work A construction-themed program is an integral part of DIrsquos core program culminating in a yearly global finals com-petition The triennial CONEXPO-CONAGG exposition hosts a spe-cial 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
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
Dennis Slater
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
Nat
iona
l LTAP amp TTAP Program
s
Serving Americarsquos Local Road amp Brid
ge A
genc
ies
wwwltapt2org
Enhancing Transportation for Over 25 Years
The FHWA LTAPTTAP Clearinghouse managed by the American Road amp Transportation Builders Association- Transportation Development Foundation (ARTBA-TDF) provides program support for LTAP and TTAP centers
Federal Highway Administrationrsquos (FHWA) Local and Tribal Technical Assistance Program (LTAPTTAP) provides information and training to local governments and agencies responsible for over 3 million miles of roadway and 300000 bridges in the United States
The LTAPTTAP 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 LTAPTTAP 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 programrsquos mission is to foster a safe efficient and environmentally sound surface transportation system byimproving skills and increasing knowledge of the transportation workforce and decision makers
To find the LTAPTTAP Center in your area visit wwwltapt2org
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
AGGREGATE ASPHALT PRODUCTS Wirtgen America wwwwirtgenamericacom Inside Front Cover
CONSTRUCTION EQUIPMENT Caterpillar Inc wwwcatcom 9 Wirtgen America wwwwirtgenamericacom Inside Front Cover
HIGHWAY SAFETY PRODUCTS Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
INDUSTRY MEETINGS amp EVENTSCONEXPO-CONAGG 2011 wwwconexpoconaggcom 33
INSURANCECNA wwwcnacom 5 Travelers wwwtravelerscom Back Cover
SAFETY PRODUCTSLocal Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SAFETY RESOURCES Local Technical Assistance Program wwwltapt2org 37 Work Zone Safety Clearinghouse wwwworkzonesafetyorg 30
SOFTWAREHCSS wwwhcsscom 24
ADVERTISER INDEX
Advertise in ldquoTransportation Builderrdquo Contact ARTBArsquos Liz Cavallaro at 202-289-4434 or lcavallaroartbaorg
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
ARTBA Board Contractors Division amp Council Meetings at CONEXPO-CONAGG 2011
Las Vegas Nevada bull March 21-23 bull The Venetian Resort
For more information or to view the agenda visit the ldquomeetings amp eventsrdquo section of wwwartbaorg Contact ARTBArsquos Director of Meetings Ed Tarrant at etarrantartbaorg or 202-289-4434 with any questions
2011 CONEXPO-CONAGG_TB adindd 1 2142011 24616 PM
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183
Fallon | Minneapolis
Bleed 8875 x 11375
Trim 8375 x 10875
Live 7875 x 10375
Media FP 4C Bleed
Fonts Scala Sans Regular and Bold Arial Black Regular
Ink Colors CMYK
Notes NA
Creative Director Darren Spiller
Art Director Colin Booth
Copywriter Ben Stilitz
Production Artist Brett Hudoba
Project Manager Allison Swanson
Art Buyer Kerri Jamison
Print Producer Tom Beckel
Account Executive Andie Belfry
Account Supervisor Marc Mason
Publications Issue Close ExtArtBA 020111 011911
Client Travelers
Job Number SPBIZ0PM364
File Name SPBIZ0PM364v5_8-37x10-87
Description Construction ndash Sandcastles
DateTime 011911
travelerscom
Whether your construction company is large
small or something in between we cover it
Small construction companies are different from mid-size companies And theyrsquore both different
from the big guys Thatrsquos 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 wersquore talking about one employee or one thousand wersquoll 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 yoursquoll see a big difference
copy2011 The Travelers Indemnity Company All rights reserved The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford CT 06183