trip ohio report april 2011

8/9/2019 TRIP Ohio Report April 2011

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FUTURE MOBILI TY IN OH IO:

Meeting the States Need for Safe and Efficient Mobility

April 2011

1726 M Street, NW, Suite 401

Washington, D.C. 20036202-466-6706 (voice)202-785-4722 (fax)www.tripnet.org

Founded in 1971, TRIP of Washington, DC, is a nonprofit organization that researches,evaluates and distributes economic and technical data on surface transportation issues. TRIP is

sponsored by insurance companies, equipment manufacturers, distributors and suppliers;

businesses involved in highway and transit engineering, construction and finance; labor unions;

and organizations concerned with an efficient and safe surface transportation network
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Executive Summary

Ohios extensive system of roads, highways, bridges and public transit provides the statesresidents, visitors and businesses with a high level of mobility. As the backbone that supports the

Buckeye State, Ohios surface transportation system provides for travel to work and school, visits withfamily and friends, and trips to tourist and recreation attractions while simultaneously providingbusinesses with reliable access for customers, suppliers and employees. Ohio must improve its systemof roads, highways, bridges and public transit to foster economic growth, keep business in the state,and ensure the safe, reliable mobility needed to improve quality of life in Ohio.

As Ohio looks to recover from the recent recession, the state will need to enhance its surfacetransportation system by improving the physical condition of its transportation network and enhancingthe systems ability to provide efficient and reliable mobility for residents, visitors and businesses.Ohios unemployment rate jumped from 5.6 percent in February 2008 to 10.6 percent in February 2010before decreasing to 9.2 percent in February 2011. Making needed improvements to the states roads,

highways, bridges and transit could provide a significant boost to the states economic recovery bycreating jobs and stimulating long-term economic growth as a result of enhanced mobility and access.

The federal government is an essential source of funding for the ongoing modernization ofOhios roads, highways, bridges and transit. Approved in February 2009, the American Recovery andReinvestment Act provided approximately $935.7 million in stimulus funding for highway and bridgeimprovements and $179.8 million for public transit improvements in Ohio. This funding can serve as adown payment on needed road, highway, bridge and transit improvements, but it is not sufficient toallow the state to proceed with numerous projects needed to modernize its surface transportationsystem. Meeting Ohios need to modernize and maintain its system of roads, highways, bridges andtransit will require a significant, long-term boost in transportation funding at the federal, state and local

levels.

Congress is currently deliberating over a long-range federal surface transportation program.The current program, the Safe, Accountable, Flexible, and Efficient Transportation Equity Act ALegacy for Users (SAFETEA-LU), originally scheduled to expire on September 30, 2009, now expireson September 30, 2011 following several short-term extensions. The level of funding and theprovisions of a future federal surface transportation program will have a significant impact on futurehighway and bridge conditions and safety as well as the level of transit service in Ohio, which, in turn,will affect the states ability to improve its residents quality of life and enhance economicdevelopment opportunities.

Insufficient roads cost the states drivers a total of $6.5 billion every year in the form of trafficcrashes, additional vehicle operating costs (VOC) and congestion-related delays. Without a

substantial increase in transportation funding at the local, state and federal levels, Ohio will see

deteriorated road and bridge conditions, increased urban congestion and lost opportunities for

economic growth.

A lack of available transportation funding in the future could lead to more deteriorated road

and bridge conditions and increased congestion in the states major urban areas. TRIP estimatesthat Ohios roadways that lack some desirable safety features, have inadequate capacity to meettravel demands or have poor pavement conditions cost the states drivers approximately $6.5


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Travel delays in Ohios largest urban areas are mounting. The chart below details the current

travel time index for each urban area. Travel time index (TTI) measures the amount ofadditional time it takes to complete a rush hour trip. For example, a travel time index of 1.15means that the average rush hour trip takes 15 percent longer to complete than during non-rushtimes.

2009 TTI Cost

Akron 1.05 $349

Cincinnati 1.12 $451

Cleveland 1.10 $423

Dayton 1.06 $388

Columbus 1.11 $331

Toledo 1.05 $279

In 2008, more than a quarter of major roads in Ohio were in poor or mediocre condition,

providing motorists with a rough ride. This includes Interstates, highways, connecting urban

arterials and key urban streets that are maintained by state, county or municipal governments.

In 2008, nine percent of Ohios major roads were rated in poor condition and 17 percent wererated in mediocre condition.

Roads rated in poor condition may show signs of deterioration, including rutting, cracks and

potholes. In some cases, poor roads can be resurfaced, but often are too deteriorated and mustbe reconstructed. Roads rated in mediocre condition may show signs of significant wear andmay also have some visible pavement distress. Most pavements in mediocre condition can berepaired by resurfacing, but some may need more extensive reconstruction to return them togood condition.

Roads in need of repair cost Ohio motorist $1.7 billion annually in extra vehicle operatingcosts. Costs include accelerated vehicle depreciation, additional repair costs and increased fuelconsumption and tire wear.

In addition to statewide pavement conditions, TRIP has calculated pavement conditions onmajor roads in the states largest urban areas. The chart below details the percentage of majorroads in poor, mediocre, fair and good condition in Akron, Cincinnati, Cleveland, Columbus,Dayton, Toledo and statewide.

Poor Mediocre Fair Good

Akron 11% 18% 24% 46%

Cincinnati 11% 28% 13% 48%

Cleveland 15% 26% 14% 46%

Columbus 5% 17% 18% 60%

Dayton 8% 12% 16% 64%

Toledo 17% 15% 15% 53%

Statewide 9% 17% 16% 58%


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The functional life of Ohios roads is greatly affected by the states ability to perform timely

maintenance and upgrades to ensure that structures last as long as possible. It is critical thatroads are fixed before they require major repairs because reconstructing roads costsapproximately four times more than resurfacing them.

Nearly a quarter of bridges in Ohio showed significant deterioration or did not meet current

design standards in 2010. This includes all bridges that are 20 feet or more in length and are

maintained by state, local and federal agencies.

Ten percent of Ohios bridges were structurally deficient in 2010. A bridge is structurallydeficient if there is significant deterioration of the bridge deck, supports or other majorcomponents. Structurally deficient bridges are often posted for lower weight or closed totraffic, restricting or redirecting large vehicles, including commercial trucks, school buses andemergency services vehicles.

Fourteen percent of Ohios bridges were functionally obsolete in 2010. Bridges that are

functionally obsolete no longer meet current highway design standards, often because ofnarrow lanes, inadequate clearances or poor alignment.

Bridges that are structurally deficient or functionally obsolete are safe for travel and aremonitored on a regular basis by the organizations responsible for maintaining them.

Ohios rural traffic fatality rate is nearly four and a half times higher than the fatality rate on all

other roads in the state. Improving safety features on Ohios roads and highways would likely

result in a decrease in traffic fatalities in the state. Roadway characteristics are likely a

contributing factor in approximately one-third of all fatal and serious traffic accidents.

Between 2005 and 2009, 6,025 people were killed in traffic accidents in Ohio, an average of1,205 fatalities per year.

Ohios traffic fatality rate was 0.92 fatalities per 100 million vehicle miles of travel in 2009,lower than the national average of 1.14 fatalities per 100 million vehicle miles of travel.

The traffic fatality rate in 2009 on Ohios non-Interstate rural roads was 2.20 traffic fatalities

per 100 million vehicle miles of travel, which is nearly four and a half times higher than thetraffic fatality rate of 0.50 on all other roads and highways in the state.

Several factors are associated with vehicle accidents that result in fatalities, including driverbehavior, vehicle characteristics and roadway design.

TRIP estimates that roadway characteristics, such as lane widths, lighting, signage and thepresence or absence of guardrails, paved shoulders, traffic lights, rumble strips, obstaclebarriers, turn lanes, median barriers and pedestrian or bicycle facilities, are likely a contributingfactor in approximately one-third of all fatal and serious traffic crashes.

Where appropriate, highway improvements can reduce traffic fatalities and accidents whileimproving traffic flow to help relieve congestion. Such improvements include removing orshielding obstacles; adding or improving medians; adding rumble strips, wider lanes, wider and


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paved shoulders; upgrading roads from two lanes to four lanes; and better road markings andtraffic signals.

The Federal Highway Administration has found that every $100 million spent on needed

highway safety improvements will result in 145 fewer traffic fatalities over a 10-year period.

The efficiency of Ohios transportation system, particularly its highways, is critical to the healthof the states economy. Businesses are increasingly reliant on an efficient and reliable

transportation system to move products and services. Expenditures on highway repairs create a

significant number of jobs. Increases in the cost of highway construction materials have boosted

the cost of road, highway and bridge repairs.

Annually, $563 billion in goods are shipped from sites in Ohio and another $493 billion ingoods are shipped to sites in Ohio, mostly by trucks.

Seventy-eight percent of the goods shipped annually from sites in Ohio by value are carried by

trucks and another 12 percent are carried by parcel, U.S. Postal Service or courier services,

which use trucks for part of the deliveries.

A 2007 analysis by the Federal Highway Administration found that every $1 billion invested in

highway construction would support approximately 27,800 jobs, including approximately 9,500in the construction sector, approximately 4,300 jobs in industries supporting the constructionsector, and approximately 14,000 other jobs induced in non-construction related sectors of theeconomy.

The Federal Highway Administration estimates that each dollar spent on road, highway andbridge improvements results in an average benefit of $5.20 in the form of reduced vehiclemaintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced roadand bridge maintenance costs, and reduced emissions as a result of improved traffic flow.

Surface transportation projects that improve the efficiency, condition or safety of a highway or

transit route provide significant economic benefits by reducing transportation delays and costs

associated with a deficient transportation system. Following are some of the benefits of making

transportation improvements.

Improved business competitiveness due to reduced production and distribution costs as a resultof increased travel speeds and fewer mobility barriers.

Improvements in household welfare resulting from better access to higher-paying jobs, a wider

selection of competitively priced consumer goods, additional housing and healthcare options,

and improved mobility for residents without access to private vehicles.

Gains in local, regional and state economies due to improved regional economic

competitiveness, which stimulates population and job growth.

Increased leisure/tourism and business travel resulting from the enhanced condition andreliability of a regions transportation system.


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A reduction in economic losses from vehicle crashes, traffic congestion and vehicle

maintenance costs associated with driving on deficient roads.

The creation of both short-term and long-term jobs.

Transportation projects that expand roadway or transit capacity produce significant economicbenefits by reducing congestion and improving access, thus speeding the flow of people andgoods while reducing fuel consumption.

Transportation projects that maintain and preserve existing transportation infrastructure providesignificant economic benefits by improving travel speeds, capacity, load-carrying abilities andsafety, and reducing operating costs for people and businesses. Such projects also extend theservice life of a road, bridge or transit vehicle or facility, which saves money by eitherpostponing or eliminating the need for more expensive future repairs.

Site Selection magazines 2010 survey of corporate real estate executives found that

transportation infrastructure was the third most important selection factor in making sitelocation decisions, behind only work force skills and state and local taxes.

Two 2010 reports, one by the Treasury Department with the Council of Economic Advisers and

the other by a bipartisan group of transportation experts, found that the U.S. is falling far

behind internationally in providing a modern transportation system and will need to adopt a

more ambitious and focused transportation program to maintain the nations standard of living.

The reports call for increased investment to relieve traffic congestion, improve freight and

intermodal access, improve road and bridge conditions, improve traffic safety, and reduce

emissions.

The reports found that now is an optimal time to invest in infrastructure because of reducedcosts due to the economic downturn and that providing adequate resources to modernize the

nations transportation system will require increased use of innovative funding tools including

vehicle-miles-traveled fees, public-private partnerships and capital budgeting.

The report, An Economic Analysis of Infrastructure Investment (The Treasury report), was

prepared by the U.S. Department of the Treasury with the Council of Economic Advisers.

The report, Well Within Reach: Americas New Transportation Agenda (The Miller report),was prepared by a group of the nations top transportation policy experts chaired by two formerU.S. Secretaries of Transportation, Samuel Skinner and Norman Mineta. The group wasassembled by the Miller Center at the University of Virginia to develop solutions for the

funding and planning challenges that confront the nations transportation system.

The Miller report found that the U.S. faces an annual funding shortfall to maintain conditionsand traffic congestion levels on its transportation system from between $134 and $194 billionand from between $189 and $262 billion to improve conditions and reduce traffic congestion.

The Treasury report found that U.S. infrastructure spending as a percentage of gross domesticproduct (GDP) has fallen by 50 percent and now accounts for two percent of the nations GDP.


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In contrast, China spends about nine percent of its GDP on infrastructure and Europe about fivepercent.

The Treasury report found that now is an optimal time to invest in transportation infrastructure

because well-designed projects can provide significant, long-term economic benefits,significant needs exist and construction and other costs associated with infrastructure projectsare especially low because of high unemployment and a high level of underutilized resources.

Key recommendations of the two reports include:

Program format:

Adopt an integrated approach to transportation planning that includes freight and goodsmovement and stresses intermodal connectivity (Miller).

Prioritize projects that provide the greatest returns in terms of future U.S. competitiveness,

economic growth and employment (Miller).

Increase emphasis on urban congestion relief, including adding additional roadway and transitcapacity, making the existing system work more efficiently and adopting regional policies thatmay reduce some travel demand (Miller).

Improve the delivery of transportation projects by reforming the project planning, permittingand review process to speed actual implementation (Miller).

Funding:

Transition from utilizing a user fee on motor fuel consumption as the primary source of

transportation funding to a user fee based on miles driven (Miller).

Establish a National Infrastructure Bank (NIB) that would create conditions for greater privatesector co-investment in infrastructure. An NIB would also perform rigorous analysis toidentify projects with the greatest possible societal and economic benefits (Treasury).

Save the public money by investing adequately in transportation to reduce delays, vehiclemaintenance costs, traffic crashes and vehicle emissions (Miller).

Adopt a federal capital budget that recognizes that transportation expenditures are an

investment and that takes into account future returns on those investments (Miller).

Sources of information for this report include the Federal Highway Administration (FHWA), the

Federal Transit Administration (FTA), the U.S. Census, The Bureau of Transportation Statistics (BTS),the Treasury Department, the Council of Economic Advisers , the National Highway Traffic Safety

Administration (NHTSA), the Texas Transportation Institute (TTI) and U.S. transportation policy

experts. All data used in the report is the latest available.


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Introduction

Ohios roads, highways and bridges form vital transportation links for the states residents,

visitors and businesses, providing daily access to homes, jobs, shopping and recreation.

Ohios unemployment rate increased from 5.6 percent in February 2008 to 10.6 percent in

February 2010, before declining to 9.2 percent in February 2011.The modernization of Ohios surface

transportation system can play a critical role in Ohios economic recovery by providing safe and

efficient mobility while improving the economic livelihood of the state and accommodating future

growth.1

As the nation looks to rebound from the recent recession, improving Ohios transportation

system could play an important role in improving the states economic well being by providing

critically needed jobs in the short term and enhancing the productivity and competitiveness of the

states businesses in the long term.

While state and local governments are responsible for maintaining most of Ohios roadways,

bridges and public transit systems, the federal government plays a significant role in funding the

repairs and improvements to many critical sections of the states surface transportation system. As

Ohio faces the challenge of preserving and improving its roadways, bridges and public transit systems,

the future level of transportation funding will be a critical factor in whether the states residents,

businesses and visitors continue to enjoy access to a safe and efficient transportation network.

This report examines the condition, use and safety of Ohios roads, highways and bridges, the

role of federal funding in their maintenance and improvement, the cost to Ohio motorists of driving on

deficient roads, and future mobility needs in Ohio. Sources of information for this report include the

Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), theTreasury

Department, the Council of Economic Advisers, the U.S. Census Bureau, The Bureau of

Transportation Statistics (BTS), the National Highway Traffic Safety Administration (NHTSA),, the


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Texas Transportation Institute (TTI), and U.S. transportation policy experts. All data used in the report

is the latest available.

Population, Travel and Economic Trends in Ohio

Ohio residents and businesses require a high level of personal and commercial mobility.

Despite the recession, population increases and economic growth in the Buckeye State over the past

two decades have resulted in an increase in the demand for mobility, resulting in an increase in vehicle

miles of travel (VMT). To foster a high quality of life in Ohio, it will be critical that the state provide

and preserve a safe and modern transportation system that can accommodate future growth in

population, vehicle travel and economic development.

Ohios population grew six percent between 1990 and 2009, reaching approximately 11.5

million residents in 2009.2

Ohio also experienced moderate economic growth from 1990 to 2009. During that time,

Ohios gross domestic product (GDP), a measure of the states economic output, increased by 26

percent, when adjusted for inflation.3

From 1990 to 2009, annual vehicle miles of travel in Ohio increased 27 percent, from 87 billion

miles traveled annually to 111 billion miles traveled annually.4


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Chart 1: Ohios population, GDP and Vehicle Miles Traveled (VMT) increase 1990-2009. 1 = 1990 level

0.5

1

1.5

Population VMT GDP

1990

2009

Source: TRIP analysis of federal data

Condition of Ohios Roads

The life cycle of Ohios roads is greatly affected by the state's ability to perform timely

maintenance and upgrades to ensure that road and highway surfaces last as long as possible. The

pavement condition of the state's major roads is evaluated and classified as being in poor, mediocre,

fair or good condition.

In 2008, 26 percent of Ohios major roads, maintained by either state or local governments,

were rated in poor or mediocre condition, providing motorists with a rough ride.5 Nine percent of

Ohios major roads were rated in poor condition and 17 percent were rated in mediocre condition in

2008.6 Roads rated poor may show signs of deterioration, including rutting, cracks and potholes. In

some cases, poor roads can be resurfaced but often are too deteriorated and must be reconstructed.

Roads rated in mediocre condition may show signs of significant wear and may also have some visible

pavement distress. Most pavements in mediocre condition can be repaired by resurfacing, but some

may need more extensive reconstruction to return them to good condition.


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occurring at these sites subject the pavement to higher levels of stress. It is critical that roads are fixed

before they require major repairs because reconstructing roads costs approximately four times more

than resurfacing them.9

As Ohios roads and highways continue to age, they will reach a point where routine paving

and maintenance will not be adequate to keep pavement surfaces in good condition and costly

reconstruction of the roadway and its underlying surfaces will become necessary.

The Costs to Motorists of Roads in Inadequate Condition

TRIP has calculated the additional cost to Ohio motorists of driving on roads in poor or

unacceptable condition. Roads in poor condition which may include potholes, rutting or rough

surfaces increase the cost to operate and maintain a vehicle. These additional vehicle operating costs

include accelerated vehicle depreciation, additional vehicle repairs, increased fuel consumption and

increased tire wear. TRIP estimates that additional vehicle operating costs borne by Ohio motorists as

a result of driving on roads in poor condition is $1.7 billion annually.

TRIP has also calculated the cost to drivers in the states largest urban areas of driving on roads

in need of repair. The chart below details the cost to motorists in Akron, Cincinnati, Cleveland,

Columbus, Dayton and Toledo of driving on roads in need of repair.10


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Chart 4. Vehicle operating costs to drivers in Ohios largest cities.

City VOC

Akron $249

Cincinnati $266

Cleveland $295

Columbus $170

Dayton $167

Toledo $281

Source: Hold the Wheel Steady: Americas Roughest Ri des and Strategies to make our Pavements Smoother.

TRIP, September 2010.

Additional vehicle operating costs have been calculated in the Highway Development and

Management Model (HDM), which is recognized by the U.S. Department of Transportation and more

than 100 other countries as the definitive analysis of the impact of road conditions on vehicle operating

costs. The HDM report is based on numerous studies that have measured the impact of various factors,

including road conditions, on vehicle operating costs.11

The HDM study found that road deterioration increases ownership, repair, fuel and tire costs.

The report found that deteriorated roads accelerate the pace of depreciation of vehicles and the need for

repairs because the stress on the vehicle increases in proportion to the level of roughness of the

pavement surface. Similarly, tire wear and fuel consumption increase as roads deteriorate since there

is less efficient transfer of power to the drive train and additional friction between the road and the

tires.

TRIPs additional vehicle operating cost estimate is based on taking the average number of

miles driven annually by a motorist, calculating current vehicle operating costs based on AAAs 2010

vehicle operating costs and then using the HDM model to estimate the additional vehicle operating

costs paid by drivers as a result of substandard roads.12

Additional research on the impact of road

conditions on fuel consumption by the Texas Transportation Institute (TTI) is also factored into TRIPs

vehicle operating cost methodology.


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In 2008, 45 percent of Ohios urban Interstates and other highways or freeways were

congested, carrying traffic volumes that result in rush hour delays.16 Highways that carry high levels

of traffic are also more vulnerable to experiencing lengthy traffic delays as a result of traffic accidents

or other incidents.

Traffic congestion in Ohios largest urban areas is likely to worsen significantly unless the state

is able to improve its transportation system. The chart below details the current travel time index (TTI)

for Ohios largest urban areas.,. Travel time index measures the amount of additional time it takes to

complete a rush hour trip. For example, a travel time index of 1.15 means that the average rush hour

trip takes 15 percent longer to complete than during non-rush times.

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The cost of congestion for

drivers in each city is calculated by the Texas Transportation Institutes Urban Mobility Report and

includes the cost of lost time and wasted fuel due to congestion.18

Chart 5. Travel time index (TTI) and cost to drivers of congestion in Ohios largest urban areas.

2009 TTI Cost

Akron 1.05 $349

Cincinnati 1.12 $451

Cleveland 1.10 $423

Dayton 1.06 $388

Columbus 1.11 $331

Toledo 1.05 $279

Source: Texas Transportation Institute.

Traffic Safety in Ohio

A total of 6,025 people were killed in motor vehicle accidents in Ohio from 2004 through 2009,

an average of 1,205 fatalities per year.19

Ohios traffic fatality rate was 0.92 fatalities per 100 million vehicle miles of travel in 2009.

The national average of fatalities per 100 million vehicle miles of travel was 1.14 in 2009. 20


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Chart 6. Traffic fatalities in Ohio from 2005 2009.

Year Fatalities

2005 1,321

2006 1,238

2007 1,2552008 1,190

2009 1,021

Total 6,025

Source: National Highway Traffic Safety Administration

Ohios rural, non-Interstate roads have a fatality rate that is nearly four and a half times the rate

on all other roads in the state. The traffic fatality rate in 2009 on Ohios non-Interstate rural roads was

2.20 traffic fatalities per 100 million vehicle miles of travel.21 The traffic fatality rate per 100 million

vehicle miles of travel on all other roads and highways in the state was 0.50 in 2009.22

The total cost of serious traffic crashes in Ohio in 2009, in which roadway design was likely a

contributing factor, was approximately $3 billion. TRIP has also calculated the cost to drivers in each

of the states largest urban areas of serious traffic crashes in which roadway design was likely a factor.

The costs of serious crashes include lost productivity, lost earnings, medical costs and emergency

services.23

Chart 7. Cost per driver of serious traffic crashes in which roadway design was a contributing factor.

City Safety Costs

Akron $251

Cincinnati $216

Cleveland $197

Columbus $277Dayton $326

Toledo $303

Statewide $3 Billion

Source: TRIP estimate based on analysis of National Highway Traffic Safety Administration data.


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Three major factors are associated with fatal vehicle accidents: driver behavior, vehicle

characteristics and roadway characteristics. TRIP estimates that roadway characteristics, such as lane

widths, lighting, signage and the presence or absence of guardrails, paved shoulders, traffic lights,

rumble strips, obstacle barriers, turn lanes, median barriers and pedestrian or bicycle facilities, are

likely a contributing factor in approximately one-third of all fatal and serious traffic crashes.

Improving safety on Ohios roadways can be achieved through further improvements in vehicle

safety; improvements in driver, pedestrian, and bicyclist behavior; and a variety of improvements in

roadway safety features.

Where appropriate, the severity of serious traffic crashes could be reduced through roadway

improvements such as adding turn lanes, removing or shielding obstacles, adding or improving

medians, widening lanes, widening and paving shoulders, improving intersection layout, and providing

better road markings and upgrading or installing traffic signals.

Roads with poor geometry, with insufficient clear distances, without turn lanes, with

inadequate shoulders for the posted speed limits, or those that have poorly laid out intersections or

interchanges, pose greater risks to motorists, pedestrians and bicyclists.

Importance of Transportation to Economic Growth

Many industries have contributed to boosting the Buckeye State's gross domestic product by 29

percent from 1990 to 2009 (when adjusted for inflation).24 Ohio's businesses are dependent on an

efficient, safe, and modern transportation system that will foster continued business diversification and

opportunity throughout the state. Today's culture of business demands that an area have well-

maintained and efficient roads, highways and bridges if it is to remain economically competitive. The


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advent of modern national and global communications and the impact of free trade in North America

and elsewhere resulted in a significant increase in freight movement. Consequently, the quality of a

regions transportation system has become a key component in a business ability to compete locally,

nationally and internationally.

Businesses have responded to improved communications and the need to cut costs with a

variety of innovations including just-in-time delivery, increased small package delivery, demand-side

inventory management and by accepting customer orders through the Internet. The result of these

changes has been a significant improvement in logistics efficiency as firms move from a push-style

distribution system, which relies on large-scale warehousing of materials, to a pull-style distribution

system, which relies on smaller, more strategic movement of goods. These improvements have made

mobile inventories the norm, resulting in the nations trucks literally becoming rolling warehouses.

Highways are vitally important to economic development in Ohio. As the economy expands,

creating more jobs and increasing consumer confidence, the demand for consumer and business

products grows. In turn, manufacturers ship greater quantities of goods to market to meet this demand,

a process that adds to truck traffic on the states highways and major arterial roads.

Every year, $563 billion in goods are shipped from sites in Ohio and another

$493 billion in goods are shipped to sites in Ohio, mostly by trucks. 25 Seventy-eight percent of the

goods shipped annually from sites in Ohio are carried by trucks and another 12 percent are carried by

parcel, U.S. Postal Service or courier services, which use trucks for part of their deliveries.26

The cost of road and bridge improvements are more than offset because of the reduction of user

costs associated with driving on rough roads, the improvement in business productivity, the reduction

in delays and the improvement in traffic safety. The Federal Highway Administration estimates that

each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in

the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved


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safety, reduced road and bridge maintenance costs and reduced emissions as a result of improved

traffic flow.27

How Transportation Improvements Support Economic Growth

Because it impacts the time it takes to transport people and goods, as well as the cost of travel,

the level of mobility provided by a transportation system and its physical condition play a significant

role in determining a regions economic effectiveness.

Ohios businesses are dependent on an efficient, safe, and modern transportation system.

Today's business culture demands that an area have a well-maintained and efficient system of roads,

highways, bridges, public transportation, ports and freight delivery if it is to be economically

competitive. Modern national and global communications and the impact of free trade in North

America and elsewhere have resulted in a significant increase in freight movement. Consequently, the

quality of a regions transportation system has become a key component in a businesss ability to

compete locally, nationally and internationally.

Businesses have responded to improved communications and the need to cut costs with a

variety of innovations including just-in-time delivery, increased small package delivery, demand-side

inventory management and by accepting customer orders through the Internet. The result of these

changes has been a significant improvement in logistics efficiency as firms move from a push-style

distribution system, which relies on large-scale warehousing of materials, to a pull-style distribution

system, which relies on smaller, more strategic movement of goods. These improvements have made

mobile inventories the norm, resulting in the nations trucks literally becoming rolling warehouses.

The economic benefits of a well-maintained, efficient and safe transportation system can be

divided into several categories, including the following.


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Improved competitiveness of industry. An improved transportation system reduces

production and distribution costs by lowering barriers to mobility and increasing travel speeds.

Improved mobility provides the manufacturing, retail and service sectors improved and more reliable

access to increased and often lower-cost sources of labor, inventory, materials and customers.28 An

increase in travel speeds of 10 percent has been found to increase labor markets by 15 to 18 percent. A

10 percent increase in the size of labor markets has been found to increase productivity by an average

of 2.9 percent.29

Improved household welfare. An improved transportation system gives households better

access to higher-paying jobs, a wider selection of competitively priced consumer goods, and additional

housing and healthcare options. A good regional transportation system can also provide mobility for

people without access to private vehicles, including the elderly, disabled and people with lower

incomes.30

Improved local, regional and state economies. By boosting regional economic

competitiveness, which stimulates population and job growth, and by lowering transport costs for

businesses and individuals, transportation improvements can bolster local, regional and state

economies. Improved transportation also stimulates urban and regional redevelopment and reduces the

isolation of rural areas.31

Increased leisure/tourism and business travel. The condition and reliability of a regions

transportation system impacts the accessibility of activities and destinations such as conferences, trade

shows, sporting and entertainment events, parks, resort areas, social events and everyday business

meetings. An improved transportation system increases the accessibility of leisure/tourism and

business travel destinations, which stimulates economic activity.32

Reduced economic losses associated with vehicle crashes, traffic congestion and driving on

deficient roads. When a regions transportation system lacks some desirable safety features, is


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congested or is deteriorated, it increases costs to the public and businesses in the form of traffic delays,

increased costs associated with traffic crashes, increased fuel consumption and increased vehicle

operating costs. Transportation investments that improve roadway safety, reduce congestion and

improve roadway conditions benefit businesses and households by saving time, lives and money.

Transportation investment creates and supports both short-term and long-term jobs. A

2007 analysis by the Federal Highway Administration found that every $1 billion invested in highway

construction would support approximately 27,800 jobs, including approximately 9,500 in the

construction sector, approximately 4,300 jobs in industries supporting the construction sector, and

approximately 14,000 other jobs induced in non-construction related sectors of the economy.

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Needed transportation projects that expand capacity and preserve the existing transportation

system generate significant economic benefits. Transportation projects that provide additional

roadway lanes, expand the efficiency of a current roadway (through improved signalization, driver

information or other Intelligent Transportation Systems), or provide additional transit capacity,

produce significant economic benefits by reducing congestion and improving access, thus speeding the

flow of people and goods.34

Similarly, transportation projects that maintain and preserve existing transportation

infrastructure also provide significant economic benefits. The preservation of transportation facilities

improves travel speed, capacity, load-carry abilities and safety, while reducing operating costs for

people and businesses.35

Projects that preserve existing transportation infrastructure also extend the

service life of a road, bridge or transit vehicle and save money by postponing or eliminating the need

for more expensive future repairs.36


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The report, Well Within Reach: Americas New Transportation Agenda (The Miller report)

was prepared by a group of the nations top transportation policy experts chaired by two former U.S.

Secretaries of Transportation, Samuel Skinner and Norman Mineta. The group was assembled by the

Miller Center at the University of Virginia to develop solutions for the funding and planning

challenges that confront the nations transportation system.

The reports concluded that now is an optimal time to invest in infrastructure because of reduced

costs due to the economic downturn. The report also found that providing adequate resources to

modernize the nations transportation system will require increased use of innovative funding tools

including vehicle-miles-traveled fees, public-private partnerships and capital budgeting.

The Miller report found that the nation faces an annual funding shortfall between $134 and

$194 billion to maintain conditions and traffic congestion levels on its transportation system. The

report also found an annual funding shortfall to improve conditions of America's transportation system

and reduce traffic congestion from between $189 and $262 billion.38

The Treasury report found that U.S. infrastructure spending as a percentage of gross domestic

product (GDP) has fallen by 50 percent and now accounts for two percent of the nations GDP. In

contrast, China spends about nine percent of its GDP on infrastructure and Europe about five percent.39

The Treasury report found that now is an optimal time to invest in transportation infrastructure

because well-designed projects can provide significant, long-term economic benefits, because

significant needs exist and construction and other costs associated with infrastructure projects are

especially low due to high unemployment and a high level of underutilized resources. The report

found that the unemployment rate among those likely to gain employment from infrastructure

investment is currently over 15 percent.40

The U.S. Department of Transportation also reports that it


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of a National Infrastructure Bank (NIB) that would create conditions for greater private sector co-

investment in infrastructure. An NIB would also perform rigorous analysis to identify projects with

the greatest possible societal and economic benefits.

The Miller report called for the adoption of a federal capital budget that would recognize that

transportation expenditures are an investment and that takes into account future returns on those

investments. An increased investment in transportation would actually save the public money by

reducing delays, vehicle maintenance costs, traffic crashes and vehicle emissions, the Miller report

found.

Conclusion

Roads and bridges are the backbone of the Buckeye State's transportation system. Today,

Ohios surface transportation system is under multiple pressures from aging roads and bridges and

increasing traffic congestion. As it looks to enhance and build a thriving, growing and dynamic state,

it will be essential that Ohio is able to provide a 21stCentury network of roads, highways, bridges and

public transit that can accommodate the mobility demands of a modern society.

Without the federal surface transportation program, Ohio would not have been able to fund key

projects on major components of the states surface transportation network. These projects have

supported the states economic development and created new opportunities for its residents. This

progress may slow without a strong transportation program to take the place of SAFETEA-LU when it

expires on September 30, 2011.

Ohio has an immediate need to move forward with numerous rehabilitation, expansion and

transit projects, but without a substantial level of federal funding, the state will be unable to fund many

of these vital projects.


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Enhanced federal transportation funding would permit Ohio to upgrade important sections of its

Interstate highways, improve traffic safety and expand transit services statewide. Preservation work,

such as rehabilitation and maintenance, performed on Ohios surface transportation network will pay

off in future years by protecting the states past investment in transportation and extending the life of

its aging infrastructure.

A modernized surface transportation system in Ohio will help the state accommodate

continuing population growth and offer congestion relief. Completing critical, unfunded projects

would increase mobility, better support commerce and tourism, enhance economic development, and

improve traffic safety statewide, boosting the quality of life for residents and visitors alike.

As the nation looks to rebound from the recession, the U.S. will need to modernize its surface

transportation system, improve the physical condition of its transportation network and enhance the

systems ability to provide efficient and reliable mobility for motorists and businesses. Making needed

improvements to Ohios surface transportation network could provide a significant boost to the states

economy by creating jobs in the short term and stimulating long-term economic growth as a result of

enhanced mobility and access.

The federal stimulus package has provided a helpful down payment on an improved

transportation system. However, without substantial federal surface transportation funding, numerous

needed projects to expand capacity and upgrade the condition of Ohios surface transportation system

will not move forward, hampering the states ability to enhance not only mobility, but also economic

development statewide. The future provisions and funding levels of the next federal surface

transportation program will be a critical factor in whether Ohio is able to reap the benefits of a modern

surface transportation system.

# # #


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Ohio Notes

Pavement conditions in the report are based on Highway Performance Monitoring System (HPMS)data obtained by the Federal Highway Administration from the Ohio Department of Transportation.The data is for all arterial roads and highways, which includes Interstates and other freeways and

expressways.

The scale used to determine pavement conditions are:

IRI PSR

Poor 170 and above 2.5 And below

Mediocre 121-169 2.6 3.0

Fair 96-120 3.1 3.4

Good 0-95 3.5 and above

Bridge condition data is from the Federal Highway Administrations National Bridge Inventory for all

bridges, 2010.

The congestion data, including the travel time index and also the cost to motorists of traffic congestionare from the Texas Transportation Institute 2010 Urban Mobility Report, which can be found at:http://mobility.tamu.edu/ums/

TRIP calculates the average additional vehicle operating costs paid by motorists by estimating theadditional costs that are paid by the average driver as a result of driving on roads in poor, mediocre andfair condition, based on a TRIP model. The base cost of operating a vehicle is determined annually byAAA. TRIP then calculates how much vehicle operating costs are increased annually based on a stateor regions pavement conditions on its major roads, as determined by FHWA.

The safety costs are based on TRIPs estimate that roadway characteristics are a contributing factor inapproximately one-third of serious and fatal vehicle crashes. This estimate is based on traffic fatalityrates on various classes of roadways and additional traffic safety research. The estimate does notsuggest that roadway characteristics are the primary factor in serious crashes, but roadwaycharacteristics such as lane widths, intersection design or the presence or absence of lane barriers,rumble strips, paved shoulders or adequate lighting can contribute to the consequences of a driver erroror traffic crash.

The actual estimate for the cost of traffic crash in a state comes from the Crash Cost model developedby the National Highway Traffic Safety Administration, which is then divided by three to determine

the portion of the cost of crashes, in which roadway characteristics are a contributing factor.

If there are additional questions about TRIPs methodologies please contact Frank Moretti, TRIPdirector of Policy and Research at 202-262-0714.
http://mobility.tamu.edu/ums/http://mobility.tamu.edu/ums/


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41Ibid. P. 2.42Miller Center of Public Affairs (2010). Well Within Reach, Americas New Transportation Agenda. P. 38.43Ibid. P. 34.44Texas Transportation Institute. (2009). Urban Mobility Report.45Miller Center of Public Affairs (2010). Well Within Reach, Americas New Transportation Agenda. P. 40.46

Ibid. P. 45.47Ibid. P. 31.

trip ohio report april 2011

Documents