Transportation Crisis Looming, Report Says

“Our highway system is aging, our cities are choked with congestion, our transit systems are inadequate, our ports function poorly and our railroads are at capacity.”

The comments came from Stephen Sandherr, chief executive officer of the Arlington, Va.-based Associated General Contractors of America at a recent press conference in Washington, D.C. He released the findings of a report from the AGC and 16 other organizations aimed at helping the National Surface Transportation Policy and Revenue Study Commission develop recommendations to meet growing future domestic transportation needs.

The report, A New Vision for the 21st Century, is available online at www.transportation1.org/tif5report/.

The primary objectives of the future transportation system must be to reduce congestion, position the U.S. to remain globally competitive and meet the growing mobility needs of the 21st Century, Sandherr said. To achieve this objective the vision document states that the U.S. must preserve and modernize the existing system, improve its performance and add substantial capacity in highways, transit, rail, airports and seaports. Substantial increased investment will be necessary to achieve these goals.

Indiana DOT Implements Internet Bidding

The Indiana Department of Transportation has opened some highway contracts to Internet bidding—a technology expected to save taxpayer dollars and make the bidding process easier, streamlined and more accurate than before.

Because the bidding encourages contractors to compete with one another to build state highway projects, it ensures the state gets the best possible price for highway projects, IDOT says.

Prior to Internet bidding, the process was conducted through paper bids. With paper bidding, contractors paid for travel each month to Indianapolis to submit the bid—a time-consuming and costly process.

But with Internet bidding, contractors will be able to review and submit bids for highway projects from their office.

In addition, it is anticipated contractors will bid on additional projects, IDOT says. More bids on a project mean increased competition, typically resulting in lower bids.

Finally, Internet bidding will save time by eliminating the need to re-enter bid information into the computer and increase the accuracy of the bidding process by using software that checks for mathematical errors.

Internet bidding is being offered through Bid Express, an online bidding service developed for the road construction industry. Bid Express is in use by 29 state departments of transportation and one Canadian province.
Contractors who wish to use Bid Express can visit the Bid Express Web site, www.bidx.com, or call Bid Express at 342-381-4888.

Cement Consumption to Drop 4.4% in 2007, PCA Says

Cement consumption this year is expected to fall 4.4% lower than 2006 levels, the Skokie-based Portland Cement Association says.

The drop in single-family housing is affecting consumption, according to the most recent forecast from the PCA.

PCA Chief Economist Ed Sullivan says the decline will be temporary, with a 2.2% cement consumption gain anticipated for 2008.

“Sustained growth in cement consumption normally occurs when all three sectors of construction--residential, nonresidential and public—are thriving,” Sullivan said. “With the current gain trends in nonresidential and public and most regional residential markets expected to back to track by 2009, we anticipate the onset of a period of continued growth to start that year.”

Additionally, the PCA’s forecast adjusts its outlook regarding cement intensities. Cement intensity measures the amount of cement used per real dollar of construction activity.

Originally expected to increase and cushion the decline in cement consumption, cement intensities have declined for 10 straight months. Weather conditions, lower construction activities in key regions and other conditions are factors that may be contributing to an erosion in cement intensity. PCA now expects a 1% decline in 2007 cement intensities.

With a decrease in cement consumption, a reduction of cement imports is also predicted.