1 / 12

Finance: The Critical Link in Infrastructure Trends

Learn about the implications of finance on land use and infrastructure development, including effects on transportation policies and future trends in logistics. Explore the shifting dynamics in financing highways and the challenges of matching transportation infrastructure with demand. Gain insights into the changing landscape of supply chains and the financial implications for various sectors.

ftodd
Download Presentation

Finance: The Critical Link in Infrastructure Trends

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Implications for Land Use and Infrastructure Finance

  2. Overview • Policies That Have Created Trends in Logistics • Trends in Logistics • Effects on Transportation • Attempts to Match Transportation Infrastructure with Demand Finance: The Critical Link

  3. Current U.S. Policies • Transportation • Little or No Guidance to Modal Development • Freight Markets Designed for Lowest Direct Cost to Shippers • Transportation Infrastructure • Lowest Possible Short-Term Direct Cost to Shippers • Dramatic Decrease in Cost • Transportation Rates • Logistics Cost • Tax • No Tax on Internet, Interstate Sales • Dramatically Lowered Duties Finance: The Critical Link

  4. Changes In Technology • Manufacturing • Agile Manufacturing • Improved IT (GIS,ERP,GPS,EDI,UPC) • Transportation • Containerization • Retail • Internet Ordering Finance: The Critical Link

  5. Resulting Trends • Shipment Demographics • Longer Distances • Smaller Shipments • All Resulting in More Trips and VMTs • Carrier Economics • Governmental Funding Finance: The Critical Link

  6. Resulting Trends 2 • Supply Chains • Lack of Equipment Standardization • Mostly 20 and 40 Foot Containers for International • Mostly 53 Foot Containers or Trailers for Domestic • Need Terminals to Transload International Shipments to Domestic Vehicles • Transload Terminals Become More Attractive With Greater Volumes of International Traffic Finance: The Critical Link

  7. Implications For Land Use • Undervalued Transportation Costs • Increase Use of Transportation Versus Other Inputs Such as Land or Capital • Increase Use of Truck Versus Rail • National Transportation Policy • Retards Intermodal Coordination • Increases Demand for Transportation • Accelerates Movement of Manufacturing Offshore Finance: The Critical Link

  8. Implications For Finance • Need For Infrastructure Investment Growing Dramatically • Doubling of Freight Transportation Between 2000 and 2020 • Growth in International Traffic Requires Additions to Infrastructure • Ports, Bridges, Interstates, and Connectors Finance: The Critical Link

  9. Implications For Finance: Who Will Pay? • Rail Carriers Will Remain Cash Poor and Unable to Invest Large Amounts of Capital in Infrastructure • Governments’ Will be unable to Build New Infrastructure Fast Enough • Need More or Less • More Efficiency and More Capacity • Less Demand Finance: The Critical Link

  10. Financing Highways • More Efficiency • Scale, Density, and Technology • “Free” Highways • Not Free and Not Affordable • Standard Toll Roads • Not Efficient and Avoidable • Smart Toll Systems • Efficient but Intrusive Finance: The Critical Link

  11. Case Study I-95 I-81 Corridor • Rail • Conrail Merger was Sold as Taking Freight Off Highways Between Atlanta and NYC • Bottlenecks Prevent Highway Relief • Highway • Most New Capacity Needed in Virginia, but Mostly for Interstate Traffic • Toll Road Proposed for Trucks • Motor Carriers Vow Not to Use Toll Road • Virginia Can’t Build Without Tolls Finance: The Critical Link

  12. Implications For Everything Else • Transportation Cost Will Increase Dramatically • Congestion • Reliability • New Hours of Service Laws • Higher Cost Should Reduce Demand For Transportation • But Only After We Have Had an Infrastructure Meltdown Finance: The Critical Link

More Related