Transcripts For CSPAN2 Freight Movement Hearing 20171222

Chairman and the Ranking Member, the whole committee here, senator barrasso, senator carper, you have an introduction to make also. We will do that. Lets recognize senator carper because he will be coming back and doing his a little later. Very briefly, welcome to this important hearing, i think the chair and Ranking Member for putting this together and giving us a chance to say something, i ask unanimous consent him if i come back and give it live later this morning i will do that, good to see you, thank you for joining us this is important stuff. I want to thank all of you for being here today, thank you for your help in getting this together. I have taken counts, the last one other than you and me, retiring this year, that means you and me. I hope that is not a message. We did coming, working together in a bipartisan way of accomplishing things, looking forward to working with my colleagues who worked in legislation benefiting users for Transportation Networks and the economy. Since donald trump did in office we have seen 3 growth in the economy, 2 million jobs, Consumer Confidence skyrocketed but the economy will only continue to grow if our infrastructure is maintained, expanded to meet future needs. In 2015, 18 billion tons of freight, 19 trillion moved over highways, rail raids, these numbers are expected to grow with Freight Movement. By 2045, an estimated 37 trillion. When freight is divergent around structurally deficient bridges or awaiting movement in our ports or waterways, estimated 27 billion annually, increased costs borne by his this is raising prices on consumer goods. The more delays we see that further behind we will become. According to the World Economic forum, the us ranked 12th in infrastructure quality and American Society of engineers we heard several times from scored our infrastructure as d plus earlier this year estimating we need to spend 2 trillion in the next 10 years to improve infrastructure in the overall economy. The last Congress Passed authorizing 305 billion over five years and established 6. 3 billion freight Formula Program to invest in freight projects on the national highway Freight Network, first time that has been done, creating 4. 5 billion to improve the safety and movement of freight. The largest transportation authorization in a decade, we close the gap between funding and needs, look forward hearing from Witnesses Today and enjoy meeting individually and reminding Mister Parker we in the state of oklahoma and the best kept secret is we are identical. Senator cardin. Thank you for reminding me how long we have been here. Appreciate that very much. We have been friends since we first came to the congress in 1987 and i thank him for his dedication, willingness to find ways to move forward particularly on infrastructure, it is a pleasure to work with you on the subcommittee that deals with infrastructure with his of this committee. Todays topic is critically important, Freight Movement, assessing where we are now and where we need to go, this nation was built by the fact that we were able to build an economy and our infrastructure was critically important to develop the economic strength that we all are so proud, the us Freight System depends on the multimodal system of infrastructure. Roads are critically important for our trucks, rail is important for our freight moving by rail. Yesterday i had a meeting of the maryland delegation with the new acting ceo of a sx. We talked about freight issues including the challenge in baltimore with a total double stack and incredibly important to maintain and strengthen our rail. We talked about the waterways, Mister Thomas in regards to the port of baltimore and the importance that is to movement of freight and our pipelines. Certainly our airports. Our airports are becoming more congested and it is an important part of our freight. The next 30 years our Transportation System which powered the rise of the nation with generations of Economic Growth become a drag if we do not Pay Attention to investing in americas infrastructure. We know how many hours a week are wasted in transportation through trucks stuck in traffic, try to get through the Washington Area on any day even on weekends, becoming difficult, even in the middle of the night. I went home yesterday morning from here to baltimore and it took me longer than it should have to get home to baltimore. There is congestion and we need to do a better job dealing with that, trucks lose 28 billion in wasted time and fuel per year. We have major tensions to pay, facing severe congestion, the cost of moving freight and fuel on inland waterways, ports need dredging and modernization if they are going to sustain jobs in the regional economy, transit systems the estimate is 100 billion in maintenance backlog in the transit system. I can attest to the need for maintenance, companies depend on the nations Transportation System and those who power these companies will feel these effects. Multimodal freight Transportation System is essential despite advances. I applaud the leadership of this committee that provides Funding Sources for these programs. We need to build upon our success in this committee to provide the where with to modernize infrastructure. I am going to highlight because Ranking Member, what aspect, Mister Thomas is here, let me take the opportunity to brag about the port of baltimore and the importance to our economy. We are one of four ports on the east coast that has the depth and width necessary to take on the new shifts coming through the panama can now. That is an important part of the economy. A 50 foot container, we look at statistics in the record, the entire number in regards to the port of baltimore. Let me point this out, 13,650 direct jobs in the port of baltimore, 20,000 jobs linked to port activities, the port is responsible for 3 billion in individual wages and contributes 310 million in state and local tax revenue. And we cant do it on our own. And on the floor of the United States senate, we all know investing in infrastructure, will not only build the tools necessary to build the economy but create jobs of the future that we need to support nature the future of this nation. I look forward to hearing from the disinterest panel and for being here. Senator carper, happy to defer to you so you dont come back later. Appreciate you doing that. The port of baltimore, wilmington, delaware, my staff was good enough to drop off of prop, told them we are not only the top banana but importing crews and dropped off, that is not true but dropped off the package of prunes. After the experience of the last few days, and on a serious note i want to say when i gave my floor statement talking about ingredients that are part of the nurturing environment and job preservation and access to foreign markets. And roads, not just rail and all the above. And to pay for this stuff, we had this reluctance to pay for this stuff and the challenge is to figure out costeffective ways that leverage nonfederal moneys, state and local moneys, and that is the challenge. It is important having gone through a period when tax reform, and the month to come in the right way, do it together. And a much better job, what mark twain used to say, confound our critics and many of our friends. Mister chairman, i would like to say a few words in todays hearing, assessing where we are and where we need to go. And i think Ranking Member cardin and chairman inhofe for holding this hearing, everyone benefits across the bridges and ports, the freight industry allows for americanmade products to go to the coasts and across the world. This will underscore the need to upgrade and maintain highways and shipping lanes, addressing the aging infrastructure is a shared bipartisan goal, the Public Works Committee holding 7 hearings on the boards of modernizing americas infrastructure, rural and urban communities, new innovative Building Techniques being used, and cut government red tape and get building project started and finished faster. As well as the success of low leveraging programs the taxpayers get the most bang for the buck. Donald trump made for examination as roads, bridges and rails a top priority. In january the administration will outline its broad vision for infrastructure. We have a unique opportunity ahead of us to pass major infrastructure legislation, grow our economy and help ensure health and safety of every american, look forward to partnering with donald trump and members of the committee as we work to improve america as roads, bridges, water systems, dams and ports which i would like to introduce chris spear who served as president and ceo of the American Trucking Association Since july 2016, a longterm friend with extensive wyoming connections and pleased he has been invited to offer his expertise at the subcommittee hearing, he attended the university of wyoming where he and his bachelors and masters degree and sits on the board of directors for the university of wyoming center for global studies, began his career with the senate in 1993 working as a professional staff member for wyoming senator out simpson. He can see understand it or nz, 1998 he was nominated by donald by president george w. Bush and confirmed by the senate as an assistant secretary of labor policy in the United States department of labor and also served as Deputy Representative of the Coalition Provisional authority in iraq and was awarded the Us Department of Defense Joint civilian service medal. In 2004 he entered the private sector of Honeywell International and Hyundai Motor company. In his current role as president and ceo of American Trucking associations he leave the efforts to advocate and educate on behalf of the trucking industry. He knows how vital freight transportation is to the economy and how states like wyoming depends on an industry that employs upwards of 7 Million People and is responsible for moving 10 billion tons of freight annually. There is no better expert to discuss how to better move americas economy forward, we look forward to hearing your testimony. Thank you. Senator cardin. I am happy to have david thomas here today, he was named deputy executive director of logistics, support operations for the Maryland Department of education, maryland port administration. In december 2016. David has been with the port 60 years and has a distinguished record and understand all the operations of the port under his current responsibility and includes facility maintenance, terminal operations, cruz operations and intermodal logistics. We are pleased that he is here and his expertise for maryland and help us better understand the challenges we have in moving our commerce through our ports. He received his bachelor of science degree from tauzin university, one of the Great Schools in maryland in 1982 and business administration, two children, one is in for still, maryland. Thank you, the other two witnesses that have not been introduced are tim parker junior, chairman of the committee, in tuscaloosa, and mark polandsinski in the regional council. We start with the Opening Statement and ask you to confine your remarks to five minutes. And we will start with you and work across. Chairman and Ranking Member and chairman thank you for the introduction and members of the subcommittee i appreciate the opport we are grateful to each of you for recognizing freight in the previous two authorization bills in this important federal response. This has proven this to as as a freight sector will need to move 5 billion additional ten over the next decade. Thats a a 40 increase. This year alone trucks will move 71 of the nations freight tonnage come with more than 10 trillion. Yet our national Highway Network is rapidly deteriorating, costing the average motorist nearly 1500 a year in higher maintenance and congestion expenses. Highway congestion at more than 63 billion to the cost of freight transportation each year. In 2015 Truck Drivers sat in traffic nearly 1 billion hours, equivalent to more than 362,000 drivers sitting idle for an entire year. Most concerta, and 53 of high highway but holidays, condition of the roadway is a contributing factor. The Highway Trust Fund is projected to run short of the revenue necessary to maintain current spending levels by fy 20201. Creating a huge fund gap that could force states to cancel or delay critical projects. The u. S. Spends less than half of what is necessary to address these needs big as investment gap continues to grow, so will the number of deficient bridges, roads, bottlenecks and most critically the title days attributable to an adequate roadways. The proposed solution is to build america fund, the fund would be support with a new indexed 20 cents per gallon the built into the price of transportation fuels collected at the terminal rack which would generatemi nearly 300 340 biln new revenue over the first ten years. This proposal would stabilize the trust fund and resource project backlog. However, we recognize over time the fuel tax is a diminishing revenue source. To that end we encourage the subcommittee to implement a ten year plan that identifies and longterm stability for the federal a program with new, more sustainable user fees. Ada recognizes that trucks are the one part of the supply chain that we rely on our era, water and Rail Partners to keep theco supply chain moving smoothly and efficiently. And were grateful for the resources provided specifically for freight projects in recent legislation. We urge you to retain those programs and increase funding for freight while maintaining that share currently dedicated to highway projects. Particularly freight in a mobile connector roads deserve dedicated funding. Grading greater connectivity between the modes and more efficient and safer movement. Finally, try to want to state our unequivocal support for continuing a strong federal role in funding and overseeing highway improvements. States are not waiting on congress to act. Several have adoptedn funding schemes that total class viii trucks only to fund their roads and bridges. Representative schiff pays dearly half of the tap into the truck Highway Trust Fund and is willing and ready to pay more, we consider such states schemes is nothing more than a policing of our industry. Other states have chosen regulatory regimes redundant of existing federal standards such as californias duplicative meal and rest breaks, refer to here in washington as f4a. These burdensome barriers are elevating safety risks to the motoring public while lining the pockets of highly inefficient tollbooth operators and trial lawyers. That is trucking revenue that would have been spent on driver pay, training and purchasing safer, more environmentally friendly equipment. Federal inaction hasas allowed states to create a maze of added complianceom costs that impede r industries ability to grow and support our nations economy making state preemption a top priority of trucking companies. Rights in support of devolving responsibility fails to acknowledge the constitutional obligation to support interstate commerce and those benefits that extend beyond jurisdictional boundaries. The gps heat maps tracks the movement of freight. These illustrations underscore how it isnt a local state or regional problem as much as rhetoric tries to suggest but a federal issue with serious economic and security implications i applied this committee for its razor focus a committed partner to help each of you and your Senate Colleagues produce the infrastructure bill in 2018 that republicans and democrats and the American People can be proud of. Thank you for the opportunity to testify. Chairman and Ranking Member thank you for allowing me to share my views. With the council of governments with the coalition of the gateway. And with that infrastructure as a metropolitan organization for the region has final authority overall federal spending on surface transportation. With the nationally significant bridge that is the linchpin on the i 75 trade core door that connects michigan to miami and carries over 1 billion of goods every day. But but it is suffering due to structural deficiencies and overcrowding. Around 750 million annually with wasted time and fuel. The common Commerce Clause with those interstate commerce 77 of all freight crosses straight state lines but they cannot shoulder investment to improve that. It is a down payment but more is needed to keep pace that as a percentage of gdp spending on what it does on infrastructure that formula dollars to have complex trade projects is limited recognizing this a muchneeded Grant Program to target large fray and highway projects and competitive programs encourage and incentivize not to get involved with 800 million in fy in fy 16 and leverage 3. 6 billion of total investment. Just because a project is more affordable to the federal government it doesnt mean it is the most valuable investment for a countrys economy. They should first be evaluated projects should first be evaluated on their ability to meet congressionally defined program goals. To foster strategic investment we respectfully make five recommendations. Number one, a National Vision in Investment Strategies should shape and guide the nations freight infrastructure system with active coordination among states and regions. A focus on multi modal freight should be established within u. S. Dot office of the sector to guide policy and programming with a focus on nationally significant projects. Number two, provide a dedicated sustainable and Flexible Funding source. Investment in the Freight Network has a much larger return on investment and other transportation spending. Existing programs available for freight infrastructure like infra and tiger are vastly oversubscribed in the first bsround, infra sought 13 13 d requests for every one dollar available. A minimum annualy direct federl investment of 2 billion above current levels is necessary. Congress should also eliminate caps on nonhighway spending under the freight formula and Infra Programs. Freight is not only move on highways where Public Benefit is derived, Public Investment should be made. Number three, successful Grant Applications must meet meritbasedd criteria that prioritize projects with the demonstrable contribution to the National Freight deficiency. Number four, congress should oversee a fast act implementation to ensure investment collides with congressional intent andd there is sufficient decisionmaking transparency. Despite congress is developmentt of strong meritbased criteria for infra, gpo wasnt able to determine u. S. Dots rationale for selecting the first rounds 18 successful project. And lastly a partnership with the private sector. Finding should Leverage Private participation and provide the largest possible to box of funding options. An Advisory Council of freight industry members and system users could assist u. S. Dot to foster partnerships with the private sector. I think the committee for the time and attention of this criticallyth important topic. Thank you, mr. Policinski, and also thank you for being specific. Because you specified five things. This committee will have to make some decisions and i think those are excellent suggestions. Mr. Parker. Thank you, chairman inhofe, Ranking Member cardin and memories of the subcommittee. Thank you for the opportunity to testify before you today on the topic of Freight Movement assessing where we are and where we are going. I knowitit other witnesses will concentrate in the testimony on map21 and fast act so i will not do that. Instead of a focus on the boards of inland waterways, Transportation System and potential reforms that could modernize this critically important system. I curse of schip of Parker Towing Company headquartered in tuscaloosa alabama and operate 26 towboat and 326 barges. An chairman of the board of directors of the waterways council. Which is a National Public policy organization advocates for modern wellmaintained system inland waterways and ports. The Transportation System is made up of 12000 miles of the inland waterways with the intracoastal waterways nearly 11000 miles to pay the fuel tax with the Waterway Trust fund. To be successfully advocate by raising taxes by 45 to the current level of 29 cents per gallon. This tax currently pays half of the cost of new construction of major rehabilitation of inland waterways like the locks and dams but also channel deepening. After only having one order enacted it is encouraging to see this committee put it back on a twoyear cycle with 2014 and 2016. With those policy changes contained with the locks and dams. Go from 50 Waterway Trust fund to 15 in the general fund. Leading to excess significant timeline. And at the Board Meeting a few weeks ago the olmsted project will be operational next year or as early as june with full completion that was expected in 2022. Four years ahead of the estimated completion date. Now it is scheduled to be 330 million below the estimated cost. And the kentucky locks it comes at a critical Time Starting Early September 2017 lots of damage that they would be replacing repeated failures causing multiple closures and at one point the recent emergencies billed in the 20s are in critical need of modernization. Currently there is a portfolio of projects with the total cost estimated at 8. 8 billion. At this rate they will not even begin their construction we hope they will continue the same type of change and Congress Change the cost share policy with the depth of 40 or 50 feet with 50 government at 25 nonfederal budget 75 federal government. Government. By doing the same to the trust fund the committee would allow for the inland Navigation Program at or above the 400 milliondollar level. Thanks for print dissipating in the roundtable discussion. Into focus on National Freight movement one of the busiest and most diverse forts in the United States with six public marine terminals and private terminals located in our harbor. Ranking first handling more trucks and Construction Equipment than all other major u. S. Ports and in total with a total dollar value and 14 for the amount of tonnage. For the last seven years ranked among the most productive port in the nation the fourth Fastest Growing port in north america 2016. Overall we saw 31. 8 tons of International Cargo cross valued at 49. 9 billion . 9 billion. We expect to surpass both numbers this year. It can accommodate the largest container ships in the world. With the necessary infrastructure with the newly expanded panama city now. It is a leading economic engine and we feel strongly if freight is moving efficiently than the economy economy moves efficiently as well. 13000 direct jobs with 127,000 jobs in maryland yes we have hurdles we need to clear. For double stacked rails is to international or domestic containers on one another on a rail car for transportation in or out of a port that doubles capacity to have efficiencies with the supply chain. And to have that ability so to have a 122yearold freight tunnel not under the current figuration. Those to bring of less than 500 milliondollar project and then to agree to share 290 million of the 445 milliondollar cost. We submit this as for federal funding we were unsuccessful but we still thought we had a strong application and we are optimistic we will be successful in round two. The deadline was november 2, 2017 only a few short days before we were informed they were pulling support for the project without csx the owner cannot move forward without the Grant Application to have the improved intermodal currently viewed by industries in their own words it would increase clearance to remove trucks from highways to to be more efficient of a Logistics Network with more intermodal movements to support additional jobs. Also be sure waterways can handle larger ships. Baltimore depends on adequate authority and the u. S. Army of engineers to do dredging. That is the maritime equivalent to highway maintenance. Also get rid of that responsible even using the dredge sediment for Ecosystem Restoration the port of baltimore is using in the chesapeake project that is restoring natural habitat in the Chesapeake Bay. It is waiting free Construction Design funding the port of baltimore urges you to support like this and those that face that d authorization in calendar year 2021 it is critical to provide approximately 40 years of settlement capacity i ask this committee to support this in the next Water Resources Development Act to continue this project in conclusion playing a vital role to provide performance. And then to be adequately funded and in 2015 the last time cvc was funded only two out of ten staffers were assigned to the ports. They need this Additional Support to keep cargo moving without it the flow cannot perform at peak levels. Thanks for allowing me to speak before the committee. To be on this committee. And with those authorization bills i was kind of, remember that one of our big problems used to be with too much money in the bHighway Trust Fund. Thats not a problem anymore. We are looking at at it is called your attention by you, mr. Spear, in my Opening Statement that wey didnt have a great provision and till all these reauthorization bills, intel map21 and then again in fast act. Lets start with you. Is anything you didnt say in your Opening Statement concerning the progress, the positive think you could attribute to the freight provisions that both map21 and the fast act . I think both bills represent a significant a step forward. Largely because you are prioritizing, youre trying to look at a problem as it is growing alongside with the economy. We are seeing congestion. As i stated in my written and oral statements 63 billion our industry loses to congestion. We know where the bottlenecks are. We track them every year. We report on them. The research is done in concert with her industry and the w department of transportation. Taking the authorization bills and prioritizing it and putting a real good focus on freight, not just the program itself but the grants as well as Strategic Plan, which is i understand map21 we were a little bit to liquid on in terms of reporting back to you, i i what that is supposed to look like. The administration i believe needs to do more in terms of prioritization and building a Strategic Plan that allocates that money accordingly and has the most impact in this bottleneck a areas. The last two authorizations were quite significant because they put the focusic on where the problem is. We need to continue funding it and begin really working with the agencies, federal, state and local, to get the maximum out of the requirement. Mr. Policinski, you stated at a didnt write it down, repeat it for me, the amount of applications that were made as opposed to the words on the Grant Program. 13,000 for every 13 per request for every one dollar available. So then that problem, would you agree withh the comments tht were made by mr. Spear on the things that were good on the program, its just a a matter f it is not adequate enough . Its monumental what you did. For the first time you recognized freight as a primary driver of transportation spending. We believe that freight is the future. We are all part of the Global Economy for there first time. Our competitors are from all over the world, as are our business partners, bankers, lawyers for the simple fact is that by concentrating on freight you elevate projects from large projects that in our region like the bridge, 2. 6 billion project, that will move freight dramatically for the nation. All we have done is smaller projects which we invest in as well. By bringing freight to the forefront you make it easier for us to carry the case to the public that this type of spending must be done. So whats been done is invaluable. I was chairman of this committee during the 21 and then fast act and had to give credit where credit is due. The one who actually focus on this was alex on our committee. Now hes in the white house and so he is transferring that initial concern that he has for freight that you will see i think in the legislation that comes forward. Mr. Parker, ive said one of her best kept secrets in oakland is our navigation with it and windows about baltimore at all this, but we are there, too. Heres the problem that weve got, is that we are considered to be a new estate. Our statehood was in 2000 1907. So we came along later in this. However, now with our past our lifespan on all the locks and dams that we have to we are having really Serious Problems right now, particularly into of our locks and dams, the deterioration that is taken place. One of the best things is would put the provision and to allow users to participate. That doesnt have happen incum. Often, that they actually want and they get permission to give the government money. That is essentially what we went through. We, along ways on that but we also have on some other far inland like we are in oklahoma, the lifespan has already passed us. Im interested, you said in your testimony that a change in the call share in inland Waterways Trust fund might be helpful. How would you suggest that would impact project delivery . Thank yous hannity. Using the example at olmsted, when you made the policy change there, that enable the court to go in and the corps proper planning able to bring the olmsted lock and dam 330 million in early under budget under time, we can take the same policies and different able to make this policy change that we are requesting, i think will enable us to reinvest in these aging locks and dams has threat the system not on Arkansas River but throughout the country. I think thats an important aspect to that to keep this infrastructure up to speed and uptodate. Thats very good. I appreciateo that. Senator cardin. Again, thank you, mr. Chairman. I think all former witnesses. I think this committee will continue to strengthen our authorization bills, including the movement of freight. But were going to need to come together on the revenues necessary to support the type of infrastructure this country needs which will help our economy and will create jobs. Mr. Parker, i appreciated your statement of your industry supporting increased diesel fees or to get the necessary resources to deal with our inland waterways. I think we need to look at that type of an example to figure out how we can make sure with adequate resources devoted towards infrastructure improvements. Its intermodal. If you dont Pay Attention to all of the means, youre going to shortchange the efficiency factor of moving freight through america. Mr. Thomas, i want to talk abt two issues that you did raise. First, let me talk about midday for one moment. Mr. Parker also mentioned the fact that this committee has been successful at least recently in passing biannual wrda bills. I hope will have a chance to pass another wrda bill next year. We do that because we can then just some of the policy issues to keep projects on track. Midday i find to be very interesting. My predecessor senator sarbanes authored the popular authorization which was unique for its time because it allowed for the availability of dredged material to be placed which is not always without controversy. This was one that was supported because it was part of environmental restoration. So we not only were able to keep our shipping lanes dredged to the necessary level that we were able to put a dredged material to use by reclaiming what used to exist in the Chesapeake Bay, had habitation, to be returned for the natural importance within the Chesapeake Bay of having these landmasses that protect erosion, et cetera, and gives us the habitat for different species that are in the region. So it was a winwin, free pipefitter, everybody likes it and it was very efficient. Lo and behold we recognized that Poplar Island will be at capacity, and we recognize that many years ago. We recognized it i guess with the army corps in 2009 when it produced a report recommending the construction of midday pictures interesting thing. Theyey recognize that probably about 20 years before it would be ready to actually the function because thats how long it takes. Its a something that could be done overnight. Thats i guess one of the points i want to raise, mr. Chairman. You need leadtime for a lot of these projects. Now were running into a situation because its interactive. And may not be for the authorized to wear working to make sure in fact, it continues congress not only authorized it, it is prepared to move forward on it. But how important is it that we stay on track . [inaudible] put your mic on. Sorry. Every job as benefit to the National Economy and the will be substantial job losses and Economic Impacts without this project if the dredging of the 50foot authorized channel is delayed due to the acceptable dredged material placement like being put on line. Without midday, we expect within two to three years of the most recent dredging event the 50footst channel would go to fortify footsteps result in foreign losses, 12,780 direct jobs, 800 million in personal wage and salary income at 656 million in Business Revenues and 85 million in state and county municipal taxes that we put at risk if were not able to maintain our 50foot channel. I think you for that. Turn to him what you do know that mid bay for the maryland bipartisan delegation, this iss our top priority to make sure that we stay on track with mid bay. For the dredging of the baltimore harbor. You talk also about the double stacking, Howard Street that that somewhat unique that we have one of the few bottlenecks where double stack trains through baltimore. You gave numbers. A grant request and judge poe because csx change their view. That was the former ceo who recently passed away. I take it used on the support is moving forward if we can get csx to move forward . Yes, senator. Thanks for thesx question. I think the port of baltimore we are very wellpositioned today due to a Publicprivate Partnership that we entered into back in 2010. 2010. Give us a village expand our Container Terminal and we are big ship ready. We have strong consumer market. We have the 50foot deep channel, new container, new cranes, productive labor. The one box that we do not check off is the double stack and having that a bill to grow our volumes to the port of baltimore. Estimate with the Howard Street tunnel coming online if were successful that would increase our bond roughly 100,000 containers annually. Annually. They said 6000 construction jobs during the project and then another 7200 jobs link to the Howard Street activity if it is completed. Thank you. Mr. Chairman,to i would ask unanimous consent senator harris was here earlier, that the letter from the port of los angeles, including two charts, being a part of our record. Without objection. Mr. Chairman, thank you. Let me ask a specific question at a broader winter i will start with mr. Spear. Good morning to you indicated in your testimony some doubts about Infra Program and its impact or the consequences in rural aspects. That program has a 25 co set ase and i wonder if you would expand on what we might be concerned or should be concerned about when it comes to rural projects . I think privatization is pivotal in the last two authorizations reflect that. Making certain we preserve in 1956 federal aid Highway Program that is largely centered on disturbing find steadystate and localities, though states and localities are integral partnership with the Freight Program priorities but they are also receiving their funding as well. So everybody is competing for the same type of funds but increasing funding on top of what has already been done is where we need to see more results to occur on the local level. It is a funding issue but putting more money into the programs will see results. What we have discovered is the off system roads and bridges to getting the grain to market so to rebuild or restructure infrastructure that lends itself to trucking across the country and it has to begin someplace it is pretty rural in the case of our state. Thank you for that reminder about the broader question is using this as an opportunity to the economic wellbeing of our country with all transportation modes that is nafta the value to export commodities and manufactured goods to the north and to the south of how we earn a living in kansas i would highlight agriculture in particular will always be just fine because canada and mexico will always want our commodities i wish that was true i hope it is true nobody can compete but to see the cost of freight and the differential to get grain to mexico compared to argentina to use waterways to get grain to new mexico with the disadvantage the competition is great with grain coming from someplace else to be shipped as our neighbor to the south if nafta went away what about the consequences for the use of trucks or our waterways and the opportunity to highlight the importance of investment to compete in a Global Economy that could be anyone but if you could highlight for me the value of trade with mexico to be competitive globally to compete with infrastructure. It is absolutely essential to walk away from obligations is not a perfect agreement but it is trying to improve that in the manner reflective of the economy but trucks move 70x and 81 of the border crossings are moved by truck 71 with canada. To walk away from that talk about the recession it isnt the recession but it is catastrophic to our economy and our partnerships to the north and south canada would jeopardize National Security with the ability to work with other countries on different levels. Beyond the National Security benefits we make the freight move through connected means and to walk away from those opportunities would have a dramatic effect on every state including kansas. With or without nafta american agriculture is intense competition and our key with the reports so the things that we occurred do to make them competitive is the policy change of the Fund Obligations that is a huge state lung a huge step to keep american agriculture and the navigation Sustainability Program as it is frequently referred to that is a key component Going Forward hoping congress will direct some steps to changing those locks and help agriculture moving forward. We dont have navigable waters in kansas but i would say we care greatly about those waterways to the locks and dams that is the connection to the rest of the world. Senator . Chairman and panel i appreciate when we have these infrastructure hearings when the bipartisanship is so apparent there has a physician to have gas and diesel to pay for additional highway road and related infrastructure. Correct . Correct. Does your Organization Take the same position . We do and we support increasing the gas tax. One of the reasons is from an article talking about the gas tax hike to pay for the infrastructure plan it works mr. Spear is quoted to say taxpayers already paid dearly on the inaction to fix the highway. Can you explain . Be make your state is a good example. One of the highest cost aids in terms of car damage it doesnt matter how big it is everybody leads to the previous question. You are referring to the hundreds of dollars when those were documented. 1500 per dollars per motorist spending on maintenance and congestion fees like rhode island wouldnt have to pay for the existing roads and bridges that we already paid for through taxation so now it is doubledip and they are not adequately funding the programs it has created and so in contrast the 340 billion that was 100 per motorist per year for all roads and bridges in the country. To make an investment in the quality of roads to say far more and saving on the wear and tear and damage. That 100 extra gives you 340 billion of new revenue for roads and bridges. Go out one day on one way one road they hit you at 44 just to go a few miles. You almost paid half of what you paid for one year through the taxation on the 20 sent for all roads and bridges. And it goes out by highway but with sandy we saw 95 closed because it was flooded with the amtrak rail system and in particular with connecticut with high risk from Sea Level Rise and storm surge. How alert do we need to be with coastal infrastructure . It is certainly a concern you have to maintain when the economy demands it. And those risks to prepare for the new risk. And add infrastructure. No way to look at that fact that we should not be prepared. So let me turn to mr. Thomas first of all let me thank you for the port of baltimore support for the marine Planning Efforts and with the exhibit that is paralyzing the existence of the base. It is hard to go back to raise that infrastructure the schools and the houses with the economic ecosystem and the military is now predicting that Norfolk Naval station may be out of business in just a few decades. Whats the lesson from this for our ports, our commercial ports like yours . Thanks for the question. And the recognition. I was just able to attend the annual meeting and it is on all ports radar screens with how we want to do with sealevel rise. The administration, weve begun filming of a port rezoned port resulted program for Climate Change that incorporates a 2010 Vulnerability Assessment for all of our port infrastructures. Currently all port infrastructures that we build we phrase, where added 10 so we have raised it to the above current elevations. Our newest automobile Port Terminal at fairfield was built at plus ten, taking into consideration what the stakes are showing us with Sea Level Rise its a real thing. Our newest project were working on now, we have rehabilitation of that we were raised to ten feet. To your point you can raise it to ten feet. What happens behind a . Those of the things were struggled with now. We have a couple strategies. We are constructing storm water vaults. Adequately to my colleagues i should cut you off there. If you want to fill out your answer further, i would more than welcome to do in writing but im a minute over and there are other colleagues would get if you will forgive me i will defer to my other colleagues but i appreciate it. Thank you. Thank you. Senator shelby. Mr. Chairman, first id like to, the bios of tim parker who was is testifying here be made part of the record. Without objection. I have ahe few observations. I believe that the infrastructure, the ports, the animal centers, the river system, the locks, everything that goes with it, our highways are at a critical time that weve got to do something here in the congress about. Ifdo we dont were going to cripple our economy, i believe, down the road. You have to move things. Anybody who knows this. Youve got to move freight, the key to it whether its through the oceans, in all ports, through the river system, through the trucks, through the railroads. It works together. Mr. Chairman, i believe and i talked with you about this before, and a lot of them, this is right for a bipartisan infrastructure bill. Its going to cost money and weve got to figure it out, and we cant think small. Weve got to think big. As chairman and off asked, let me interrupt you, and share what i shared with you with this committee. Weve already been doing this. We have been to the democrat side. With that private meetings on the floor and weve been successful in the past. Absolutely. Not just these areas as well as the wrda bills. Its right for bipartisan push right now i believe, mr. Chairman. Now, id like to focus, i was very interested in the port of baltimore which is very important to senator cardin and mr. Thomas talking about. You are 50 feet deep i understand, is that right . Yes, sir. That optimal. Mobile in alabama with our 45 feet and were trying to go to 50. We go to 50, we will be one of the deepest force on the golf. Everybody knows, you spoke for it, what that means for the port. What it means for baltimore on the east coast and what it could mean for mobile, alabama, which is a busy port moving toward more and more like freight of the world container used to be mainly a commodity, shipping commodities in and out. We still do that. Most ports to do, but mr. Parker, whats your observation . You been chairman of the Port Authority. Youvebs been in, you and your family have been in the barge business a long time, transportation of water, speak for the water council. How important is the modernization, all of it, highways, the speaking of the port of mobile, to the southeast into the state of alabama . Senator, it is critical as you could imagine. Not only for a balance of trade deficit to open a export products move but keeping our industrial plants competitive modern as they bring materials. You have championed the port of mobile and the deepening project and we know the benefits. As all ports do. Deeper drafts mean more open freight rates i applied you and hopefully keep pushing of the direction get that deeper channel. On behalf of the truckers association, i think a lot of your remarks have been spot on, but we all, with its rhode island, alabama, new york, california, we are facing the same challenges, are we not . Absolutely center. Mobile, baltimore, i was just out that new York New Jersey Port Authority giving a talk and we talked about how they deep and modernize technology that may support very efficient. If you cant move the boxes on the trucks, doesnt matter how much money youat invest in the port. Doesnt matter. So that intermodal connectivity is absolutely pivotal. Thats what the heat maps i put in testimony are for is to illustrate it doesnt stop right there. Those trucks, those rail, those things go well beyond the port into many states. The economy reflects that, the price of goods we pay for reflect that so appoint mr. Parker make it is paramount to invest. The help of economy is based on efficiency in the marketplace, isnt it, and transportation is so essential to living goods and services. I think all of you and i think we got something out of this. Im hoping, im a Junior Member of this committee, so i came on this committee because i believe that were going to do and infrastructure bill that we needed and i want to work with the chairman and ranking on all of this but we got to do and weve got to do it soon. Thank you. Thank you, senator shelby. Senator duckworth. I want to thank the chair and Ranking Member for camping today sink and thank our witnesses for participating in this very important conversation. Mr. Chairman,ti transporting freight efficiently and effectively is the linchpin of a prosperous economy. Few states play s a greater role in our national Freight System, home state of s illinois. It is the epicenter of our rail network and are inland waterway system. To compete in a 21st Century Global marketplace we must consider our Transportation System as a competitive advantage. Unfortunately this advantage is eroding. Mr. Policinski, broadly speaking to you agree with the American Society of Civil Engineers that with the United States has somewhat in a ballpark of 2 trillion in it for such investment gap over the next ten years . Not only do i agree with it butt i hope that people which shouted from the rooftops over and over again. Ho it is a driving force, the need is so great. We cant look the other way. Comment senators shall be made about a bipartisan approach, its very important to the country that we do this not just economically solving this problem but the idea that congress cant come together and address such an important issue that is such a direct impact on jobs is something that we cannot just turn from. The steps this committee has made and congress is make to put freight forward have been dramatic in very important. But our job isnt done. People often say we have to do more in freight because there will be 70 more million americans by the year 2045. There will be 2 billion more people on this earth in 2045, and those people reside in countries and economies, it will be competing for our businesses, jobs, income. So the idea that we have a shortfall in how we fund our Freight Program, how we fund our highways and airports is a dramatic statistic and we cannot look away from it. Because literally freight is the future. Thank you. Thank you. I couldnt agree with you more. Mr. Parker, with that 2 trilliondollar gap, would you agree that are inland waterway system requires somewhere around 110 billion over ten years to rebuild our locks, leviesve and dams . Well, the taxes we pay we generated 500 10 million a year which is matched so we need to continue that. If we do the policy change we talk about what we can get back to a 409 per year program that will go a long way to getting our locks and dance, particularly our old box dams modernize and uptodate make sure we keep the industry in illinois competitive in rural markets or i couldnt agree with you more. In fact, speaking to what my colleague senator moran mentioned, we have bumper crops the less of your skin illinois. But the southeastern United States bought corn and soybean from brazil because they could get their cross into the United States faster than we could move crops down the mississippi from iowa and illinois and was still on the silos that are filled with green. My concern is the president ths secured now 1. 5 trillionse tax t that is geared towards large corporations and the ultra wealthy. I hope we can finally see the details of this play plan to rd our aging infrastructure. Unfortunately the president and his allies prioritize trickledown shucking overbuilding of middleclass that the proven economic engine of infrastructure investment. This is a disturbing trend. Your testimony such as the president s budget a roadmap of a policy priorities that cuts 150 billion from transportation spending is misguided as a relates to infrastructure investment. I wouldnt go so far to say its misguided but inconsistent with what weve been advocating. We go big we global and we willing to pay more. Were paying half the tap into the trust fund as a trucking industry. Wewe are only 4 of the vehicles on the road. When you are moving 70 of the domestic freight in this country thats our backyard pick you invest in your backyard, that are planned so to speak. Having good roads and bridges reduces the amount of maintenance, reduces congestion cost. All measurable returns for raising the fuel tax. It hasnt been done since 93. The lack of funding coming down to the states and localities and to connect all the modes and address the economic demand, stage of picking up the slack and think aboutnd the things tht are destructive to our industry. They impede our ability to grow and a brace interstate commerce and really serve consumers the way we would expect. Thank you. My last 12 seconds i want to say during the campaign President Trump suggested repatriating overseas corporate revenue could pay for robust Infrastructure Investments and, unfortunately, those revenues were exclusively used to buy down the Corporate Tax rate in his new tax bill, and zero repatriated dollars will be set aside for infrastructure. Thats about 1 trillion there. The republican textile preserved a loophole that allows hedge fund and private Equity Managers to pay Capital Gains rates on their carried interest which President Trump repeatedly pledged to eliminate. Response performs the close this loophole would generate enough revenue to rehab every lock and inland water system twice. Adding insult to injury, President Trump will rely on budget cuts to pay for his infrastructure proposal, cuts will hurt illinois families and businesses. Let me summarize, despite the rhetoric the president and his allies did nothing to play for every such investment in the budget. They cut Infrastructure Spending by almost 200 billion. Their trickledown tax bill does nothing to build on infrastructure, and that the president plans to pay for his proposal on the backs of hardworking illinois families while preserving handouts for street. I hope we can dispense of show games next year, 44 million jobs rely on our freight transportation network. We need to roll up our sleeves and get series about how we going to invest and grow our economy because countries are competing against like south koreare and china and japan. Theyre making investments and we are not. We would get left behind when we should be dominating the world. Andrl so with that i yield back, mr. Chairman. Thank you. Speaking of that, senator inhofe mentioned the importance of the system and the wear and tear and hes been a tremendous champion and we appreciate the state of arkansas appreciates your leadership in the state of arkansas does appreciate your leadership in that area. Sometimes i dont think were very smart in the way that we do things. Arkansas now has a channel we would very much like to go to 12 with a relatively inexpensive expenditure that would make less openings and less wear and tear on that. Can you talk a little bit about that about really thinking through these things. That will help the whole system lower freight cost and make american agriculture more competitive. In the market they have to serve. A lot of things we can do and we appreciate the leadership that this congress have in the committee has with the last word of bill. If we can an act policy changes like we have talked about. Given the resources can manage these projects and effectively move this country forward. I was gonna talk about the importance of the inner mogul system. Democrats and republicans united. That is so very important. Mister spirit tell us about some specific things. I understand there is a significant shortage in Truck Parking spaces. Anything that we can help you with in that regard. What is a solution. It it is a shortage, r and within the last five or seven years we really began to do a lot of research to capture the problem and its reflected on the lack of investment and what we are maintaining we are not adding more infrastructure. We are also adding a lot of regulatory requirements on our industry. One of them is the 30 minute rest break that came into effect in 2013. They are not pulling over on shoulders in undesignated places putting themselves in the jeopardy they are requiring the drivers to be rested. Its a reflection. Regulation. But it hasnt impact on this. We are not investing in to expand if a structure. In the structure. This is what we get. We definitely do. I go into greater detail but registration fees and states already collect them. A very low burden. In addition to the 340 billion in new money over the first ten years. You would receive in the at the fuel tax rack. We look for other ways to work with congress and other modes to raise revenue. We put some criteria in the testimonyy to be certain it is consistent whatever policy to make certain it is inexpensive not diverted to other causes especially for your pain into yit. That is a sensitive point with our industry. And creating impediments. Those c criteria would apply to any proposal that we would contain. Meeting those criterias. We recognize that the fuel taxes are antiquated and it was probably beyond ten years. We would challenge congress to relate look beyond a tenure bill and Start Talking about now what work you do to collect fees to fund future infrastructure its can have a lot more hybrid in the next ten or 20 or 30 years. The weight that we raise revenue is not capturing that audience. It just gonna make the problem worse. We would work with you too identify new means. But our build america fun is our centerpiece. Its the wisest, most efficient c lower than 2 in ministry of cost to put money into roads and bridges immediately. That is what we would advocate. Very quickly Mister Parker we went without the big Water Resources bill from 2007 to 2014. Can you talk about the importance of getting those bills donepo on a twoyear cycle so we dont get in ourselves with that situation again. I do consume tickets and critically important that were not constantlyta playing catchup. Do the studies and the chief reports done. I think it is critical and this whole process. So we can look ahead and adapt the changes and is notroat playg behind the curve so to speak. Thank you mister chairman. I would like to ask some questions related to an important safety issues that i had been working on. T and it is when a car slides under the body of a large trailer. When they happen the car safety features are not able to protect passengers because most of it slides under the trailer. The passengers in the car often suffer severe had and neck injury. These accidents are fatal even at low speeds. This past summer for individuals were killed when their car slid under the disabled milk and tanker that have swerved to avoid a deer in new york state. They continue to slide completely under the truck. I recently introduced a bill to require trailers to be fitted with under right guards. Are you aware that they have recommended that they are equipped with a side guard. Are you aware that the Insurance Institute for Highway Safety petitions requires stronger rear guards. They often fail in result in serious injury or death. For the Highway Safety Highway Safety performed a successful side under ride guard. And would providing a weight exemption make it easier for industry to advocate this safety measure. Do you think this is a t safety measure one fatality is too many. 40,000 a year is inexcusable. We need to be doing more. One area that i would ask that you press them on as to speed up their analysis of this and report back on the added weight of the under ride guard. To be sure that it does not compromise the integrity of the trailer itself. Were talking 80,000 pounds in the trailer. Your anymore weight underneath it. O i would very much like to have that report. I think it is about 800 pounds per channel. Money in front of it also added the cost of the requirement. As can be a massive figure we are talking. That is a big number. I would like to make certain. If the cross is the only issue those are the kinds of things that congress if its not a problem than why not report on it. With regard to Highway Infrastructure in the private entities in your opinion who would benefit from selling or leasing b the Highway Infrastructure. Thats really hard to say. Certainly not the American People. Nd we are 7. 4 million strong. We are the top drive job in 29 states. S. If we did the 20 cents on the gallon at the rack that 340 billion and extra money that you all can spend on these priorities on the 3 framework. Repaid half of the tab and were willing to pay more. I think that is the best means of doing it. We believe that tolling particularly on existing roads and bridges. They are double dipping. When were happy to pay more and were offering up here. I would recommend you take that. Thats a good deal. En do you have any prayer the p comments to make. I think this is but an extremely important hearing. N i think our witnesses that we have a bipartisan way to get the revenues we needse in a package that will allow us to move forward. With infrastructure in this country. In the tradition of this committee. Our assurance that thats can happen during the last year. We would have our meetings and i would report onas what the committee is doing. Now from the committee that really does things. Its been very helpful to have all of your input in this committee. We think you very much for coming. [indiscernible] coming up next on cspan to a hearing on creating a new National Park in utah. And then we will bring you a hearing on the permit process for ell oil and gas drilling. That will be followed by an official with the Apartment Department of health and human services. Later hearing on the 2016 law that made it more difficult for the dea to control the disputed of opioid drugs. This weekend on book tv they talk about the impact that it has have on trust. They are making us smarter about who we trust four is it encouraging us amy goldsteins. Talks about the closing of a General Motors assemblies plan. The core of my story is about that dislocated workers themselves. As a country and as a set of social policies. I decided what i wanted to illustrate. This weekend on our companion network cspan reflecting on the time in the obama administration. I was a better leader of my team at the end than i was at the beginning. Now that i see the morale and that state department. The amazing young people not being affirmed been affirmed and celebrated. Somehow admitted the crises to spend more time is easier said than done. Really in these jobs. But if i couldve made the time to do more of that i think that wouldve been the good. And now that i had time i am available if any diplomats and a lot of my former team members are in some crisis right now because they are trying to decide whether it is a greater act of patriotism. The couch in my office is getting a lot of use. Now which is good i think its a supreme supreme form of patriotism. Really making a difference. Not necessarily a positive difference. Thats something. Im at the kennedy school. And theyre saying we cant go in the Foreign Service. The test taking is way down. Far fewer people are drawn to diplomacy. In the way that our National Security does. I still say to young people go do the Foreign Service exam. And the other time of the history. That is good. You will do your two and hopefully by then we will be in a position to be trained and rehabilitate our leadership in the world and reinvesting the entire conversation. Samantha power. In the National Investigative league. It starts at 1025 eastern. Sunday on