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REMARKS FOR
THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION

NATIONAL RETAIL FEDERATION
NATIONAL STRATEGY TO REDUCE CONGESTION ON AMERICA’S TRANSPORTATION NETWORK
WASHINGTON, DC

MAY 16, 2006
11 AM

Thank you for inviting me to speak this morning at this important conference, at the start of National Transportation Week. Few sectors of our economy are as dependent on transportation as the retail sector. Without shipping, trucking, and air freight, America’s retailers would have nothing to offer consumers but blank catalogs, empty websites, and bare show rooms.

And while the retail sector plays a vital role in maintaining the strength of the world’s largest economy, it is slowly being strangled by transportation congestion. Whether it takes the form of trucks stalled in traffic, cargo sitting on the dock at overwhelmed seaports, or airplanes circling over crowded airports, congestion is costing America an estimated $200 billion a year.

If power blackouts drained billions of dollars from the economy each year, it would be considered a crisis of unacceptable proportion. Yet many accept the fact that Americans squander 3.7 billion hours and 2.3 billion gallons of fuel each year sitting in traffic jams and waste $9.4 billion as a result of airline delays. Even worse, congestion takes a major bite out of our day – time that could be spent with families, friends, and neighbors.

Congestion is not a scientific mystery, nor is it an uncontrollable force. Congestion results from poor policy choices and a failure to separate solutions that are effective from those that are not. We need a new approach, and we need it now.

So, today, I am announcing the National Strategy to Reduce Congestion on America’s Transportation Network – a national congestion relief initiative.

Congestion is not a fact of life. We will use our people, our resources, and our expertise to help our partners at the state and local levels use their existing transportation networks better and add capacity where it makes the most sense.

With me today is Joe Boardman, who does an outstanding job overseeing the safety and operation of the nation’s trains as Federal Railroad Administrator. I am directing Joe and the entire leadership of the Department of Transportation to make congestion relief a top priority, and to take the following actions.

First, we will focus heavily on our largest metropolitan areas and seek “Urban Partnership Agreements” with as many cities as are willing to participate. These agreements will call for new variable pricing programs designed to spread traffic flows throughout the day and to get more out of existing highways.

The agreements also will provide for more efficient and responsive bus systems that tailor services specifically for rush-hour commuters; speed up the review process for highway projects under way; and seek commitments from major employers in the region to allow more of their employees to flex their schedules and/or telecommute.

Second, we will encourage more states to find ways to open up their transportation infrastructure to private investment opportunities. State budgets are stretched thin, while gasoline taxes are becoming increasingly untenable as long-term sources of funding.
At the same time, major financial institutions and their clients are expressing increasing willingness to invest billions of dollars in roads and airports.

So, we will begin a discussion with local officials and consumers of transportation about the growing role that the private sector can and should play in transportation decision-making and investment. Our goal will be to greatly expand the list of states that have flexible laws to permit greater private-sector involvement in transportation projects.

Almost half of all traffic congestion is caused by construction and incidents like car crashes. So we will focus the Department’s Intelligent Transportation Systems program to encourage more communities to adopt technologies and practices designed to help drivers avoid these backups and cut the traffic tie-ups caused by construction and fender benders.

We also will engage the country’s technology leaders by inviting them to join a new Transportation Technology Forum. This forum will bring new innovation and energy to designing transportation solutions – to begin building the world’s most technologically sophisticated transportation system.

These steps will do much to improve the performance of our existing systems. But we must also acknowledge the need for large-scale investments in physical infrastructure. These investments must be targeted to areas where they are needed most – including major, multi-state, multi-use trade and travel corridors.

We will embark upon a competitive process to select three to five “corridors of the future” that have the greatest potential to relieve traffic based on current and projected growth patterns.

These projects face enormous organizational and funding challenges. So we intend to create a major federal support structure through which sponsors can work. We will set ambitious permitting schedules for these projects, identify new financing options to fund them, and fast-track these projects for federal dollars to get them moving from the drawing board to completion faster than ever before, without sacrificing appropriate environmental protections.

And I am announcing that next Wednesday, May 24th, I will convene the first meeting of the new Surface Transportation Policy and Revenue Commission. As we set a schedule of meetings that include four public hearings around the country, I will task the commission with finding solutions that not only raise revenue for highway and transit projects, but also reduce the costs of congestion.

With respect to freight transportation, we will deploy even more Departmental resources into Southern California to bring together state, local, and private-sector officials to relieve bottlenecks affecting freight coming from and heading to every corner of the country.

We will convene a joint border transportation task force with the Department of Homeland Security to accelerate some of the most significant transportation investments at our borders.

And we will engage America’s major companies – including many represented in this room today – in a sustained dialogue about the future of our transportation system.

And finally, we will take steps to improve aviation capacity by modernizing the aviation system and accelerating airport expansion programs. This will be expensive work. So we will propose new ways to support the Airport and Airway Trust Fund to better match funding for aviation services to demand.

Some of what we are about to do will be labeled controversial by those who are wedded to the status quo. But we must embrace new solutions if we are going to make any meaningful progress in reducing congestion.

President Bush and I recognize the challenge that congestion poses, and the opportunity that we have to do something about it. And today we are launching an initiative to do just that. I am setting an ambitious schedule. I expect every part of this new initiative to be under way before the end of the year.

Because the bottom line is that every person and every business in America has a vested interest in reducing congestion. Congestion kills time, wastes fuel, and costs money.

But we don’t have to let traffic delays put our lives on hold any longer. We have the tools, the technology, and the plan to make today’s congestion a thing of the past.

Thank you for your time and attention.

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