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Transportation News May 11, 2012

KBT Makes 32nd Annual Fly-In to Nation's Capital
More than 30 KBT members joined forces this week to visit Capitol Hill in Washington, D.C. and advocate for increasing funding in all modes of transportation: air transportation, rail, public transit, waterways, and roads, streets, highways and bridges.

The May 8 and May 9 visit marks the 32nd consecutive year that KBT members have visited with the Kentucky Congressional delegation, and their staffs, to remind them that there's a solid, even growing, support constituency for transportation investment.

On Tuesday afternoon, KBT members heard from seven transportation experts, representing all five modes, including Kentucky Transportation Cabinet Assistant to the Secretary, Russell Romine. Serving up the opening comments on behalf of KYTC Secretary Mike Hancock, Romine said "KBT makes our job of educating the public and educating elected officials much easier."  In a personal comment, Romine said, "SAFETEA-LU expired some 950 days.  My son was 12 years old at that time, and he will soon be 15.  We need a full-term, 6-year, authorization, and soon."

KBT attendees heard from representatives of the American Public Transportation Association, The Waterways Council, Charlie Grizzle, who represents the Louisville Regional Airport Authority, John Wetzel of the American Association of Railroads (AAR), and finally Rich Juliano and Dave Bauer of the American Road and Transportation Builders Association (ARTBA).

John Doyle, who represented The Waterway Council, complimented Kentucky U.S. Congressman Ed Whitfield for his leadership in filing H.R. 4342, the Water Resources Development Act (WRDA). While supposedly a biennial bill, the last bill was passed in 2007. Doyle noted that 13 co-sponsors have signed on to H.R. 4342, and that while the bill will not likely see action in the remainder of the 112thCongress, there is a growing understanding in both the House and Senate, for a bi-partisan bill to be enacted in 2013.

AAR's Wetzel told KBT that the rail industry has opposed a "trust fund" approach to rail improvements in the past, and would likely do so in the future. Instead, the Class I railroads want to make their own decisions about spending their own capital. In 2010, railroads spent $9.8 billion in capital improvements. In 2011, $11.6 billion was spent on capital expenditure improvements. In 2012, it's projected that $13 billion will be spent on capital improvements, and, when coupled with regular maintenance costs, the 2012 projected total will approach $22 billion to $25 billion for one year alone. In an extremely encouraging closing comment, Wetzel noted that a trucking company, UPS, is the largest single customer of the U.S. Class I railroads, making the point that intermodal transportation is increasingly important to the nation's economy.

ARTBA's Dave Bauer summarized the importance of the SAFETEA-LU Conference Committee meeting, which was holding its first public meeting while he spoke, saying (1) "get it done -it's been over 950 days since SAFETEA-LU expired on September 30, 2009", (2) "less money means less jobs", and (3) "I urge you to talk about what transportation investment means to your county, your community and your state."

On Tuesday evening, the KBT attendees attended a reception in the historic LBJ Room in the Capitol Building. Kentucky U.S. Congressmen Brett Guthrie (Bowling Green) and U.S. Congressman John Yarmuth (Louisville) spoke briefly to the transportation advocates. Other members of the Kentucky delegation sent word that they were forced to remain on the House and Senate floors for votes on important appropriations matters, which lasted until midnight.

On Wednesday morning at a breakfast in the new U.S. Capitol Visitors Center, Republican Leader Mitch McConnell, in his opening comments, was direct with the KBT audience, saying that he opposed the Senate MAP-21 bill, on final passage, because a negative amendment had been added on the Senate floor which limits the use of Public Private Partnerships as a financial tool for mega-projects. Kentucky U.S. Senator Rand Paul also voted "nay" due to the amendment to limit PPPs. It is believed that PPPs could be a useful financial tool in the construction of a new Brent Spence Bridge Project in Northern Kentucky, as well as a needed I-69 bridge near Henderson.  

When asked the possibility of a positive final outcome from the SAFTEA-LU Conference Committee, McConnell said, "I hope so", but cautioned all of those in attendance that at this preliminary point it was much too early to predict what might occur, and what might not occur. "Let's not speculate," he responded.

The Fly-In Attendees also heard from a member of the Minority staff of the Senate - Environmental and Public Works Committee, Kyle Miller.  Miller told the KBT members that in the first meeting of the Conference Committee, there were, essentially, three hours of very cordial, public, opening statements.

"I give it a 30% to 60% success rate," he said. "The conferees can decide to move to the right and pass a bill, or they hold firm and not pass a bill. If they choose the later, the Highway Trust Fund will run out of money, again," he said soberly. "We are trying to thread the needle here, through the political process," he concluded.

Following the Wednesday morning breakfast, KBT members were invited to visit with House Congressional offices in small groups and discuss key legislative positions that have been adopted by the KBT Board.               

The 2013 KBT Washington D.C. Fly-In will be held on Wednesday, May 22 and Thursday, May 23, 2013.  The conference hotel will be the Hyatt Regency Capitol Hill, conveniently located on New Jersey Ave., at the base of Capitol Hill.  SAVE THE DATES AND JOIN US !    



New KBT Member: Paducah Area Chamber of Commerce

We are delighted to introduce another new KBT member this week: The Paducah Area Chamber of Commerce.

Since 1938, the Paducah Area Chamber of Commerce has been one of the leading Chamber's of Commerce in Kentucky. Paducah Chamber President Elaine Spalding has been a transportation supporter and advocate for a long, long, time.

Rightfully so.

Paducah is home to more than 20 leading-edge inland-marine barge companies, including KBT members Ingram Barge and Crounse Corporation.  But Paducah's transportation assets are not limited to the waterways industry.

Paducah is also home to the Paducah & Louisville Railway, a KBT member, an important short-line railroad that supplies two electrical generating plants just outside Louisville, and is the only rail connection for the expanding Fort Knox in Hardin County.  In recent weeks, the Paducah & Louisville Railway has moved into a new multi-million headquarters building, a great sign of commitment to Paducah and McCracken County.

But Paducah also boasts an impressive regional airport with the real potential for expanding service, as well as its public transit agency, PATS, which is under the new leadership of  Arthur Boykin, its new Executive Director. PATS is another member of KBT.

But let's not just inventory Paducah and McCracken County's transportation assets. After all, the Paducah Area Chamber, in 2011, was awarded the highest achievement in the Chamber profession, recognizing excellence in financial performance, member programs and internal operations. In August, 2011, the Paducah Area Chamber was named "Chamber of the Year" for its mastery and application of core principles and techniques used by successful chamber of commerce across the United States.

The Paducah Area Chamber of Commerce has 1,000 members and is the largest business advocacy group in the Paducah and McCracken County region.  You may reach Chamber President Elaine Spalding at 270 443 1746, ext 205  or e-mail her at espalding@paducahchamber.org  They are located at 401 Kentucky Avenue, Paducah, Kentucky  42003. 

Welcome to the growing KBT family,  Paducah Area Chamber of Commerce !!    



143 Years Ago: The Joining of a Nation
We've told you before that a common mantra at KBT is "You Just Can't Make This Stuff Up!"

Well, that's certainly the case with this story....

Yesterday, Thursday, May 10, marked the 143rd anniversary of the joining of the Union and Central Pacific Railroads ---technically they joined their rails ----at Promontory Summit, in Utah. 

Was it a big deal?  Well, it forged the destiny of a nation.

Each year, a ceremony is held at the Golden Spike National Historic Site at Promontory Summit. Moments ranging from the celebratory, to the somber, mark the annual anniversary of the completion of the transcontinental railroad on Thursday, May 10, 1869. 

Each year, they re-create the joyful "Champagne Photo" taken when the railroads met head-to-head with their locomotives on May 10, 1860. But they also observe a thoughtful moment of silence, in memory of the hundreds of workers who lost their lives building the transcontinental railroad.

How important was it?   Well, in the early 1860's there was discussion of delaying the construction, because the U.S. was involved in the Great Civil War.  But President Abraham Lincoln ordered it be built. For you see, lowering transportation costs would improve the nation's economy as the Civil War ended.

Remember this: each time there has been a massive investment in transportation in the U.S., the costs of transportation declined.  It's a simple fact that we cannot allow to be forgotten.



SAFETEA-LU Conference Committee: More Questions than Answers.....
This past Tuesday, May 8, the House and Senate Conference Committee, met for the first time beginning at 3:00 p.m. and adjourned at approximately 6:00 p.m.

Those attending the 3-hour session were encouraged. Both House and Senate members were courteous and cordial. According to Congressional rules, the Conference Committee must meet at least once publicly. Well, that's done. In reality, much of the work will get done, or not get done, behind closed doors, at the staff level. 

On Tuesday, the Conference Committee formally selected Senator Barbara Boxer (California) as the Chairman of the Conference Committee.

OK, what's next?

There will likely be serious disagreement over whether or not the House participants can negotiate provisions that were found in their 5-year bill, H.R. 7, which failed to pass the House. According to Conference Committee rules, the Senate could demand the House negotiate only from the "shell" bill extension, H.R. 4348, which did pass the full House, but that bill contains non-transportation related items, such as the controversial Keystone XL pipeline.

It can be argued on both sides, but it would seem that the House is in a tough spot. The House conferees have gone to negotiate, but with just a handful....and a scant handful at that....of policy provisions while the Senate has a full transportation bill that carries the strong endorsement of more than 70 members of the upper chamber. So, beyond what the House bill expressly includes, the House negotiators are frankly limited to the status quo, the current law.

Congressional Rules Versus "Airdropping"

Technically, Congressional rules require Conference reports to contain only provisions that were originally present in the bills that either passed the House or the Senate. However, the reality is that totally unrelated provisions just show up in conference reports --- it's called "airdropping". But, it must be said, that "airdropping" is generally minor, modest items.  This situation would be Large Scale.

House Transportation & Infrastructure Chairman John Mica (Florida) isn't bashful. "You can do anything in Conference," he said in an interview with Politico. 

KBT's message to the Conferees: It has been 953 days since SAFETEA-LU expired.  DO IT.



Ky. & Ohio: Break Ground on Bridge Replacement
Last Thursday, May 3, Kentucky Governor Steve Beshear and Ohio Governor John Kasich broke ground on a long-awaited Ohio River bridge replacement, linking the communities of Ironton, Ohio and Russell, Kentucky.  They were also joined by other state and local officials for the ground-breaking.

This writer is extremely familiar with this particular bridge, after living for many years near this structure.

But it seems like there's a lot of investment in bridges these days, is this really necessary?

You bet.

The Ironton-Russell Bridge opened in 1922 --- that's right, 90 years ago --- as the first highway bridge along the Ohio River between Parkersburg, West Virginia and Cincinnati.  Shortly after the early 1920's, numerous other highway bridges were built across the Ohio River linking Kentucky and the Buckeye State. Those bridges included cross-river crossings at Ashland, Portsmouth, and Huntington.

The 90-year old light-blue cantilever bridge carries two lanes of traffic and a very narrow sidewalk.

In 2000, when the Ironton-Russell Bridge was 78 years old, ODOT released a report that recommended a full replacement of the narrow bridge.  In January 2003, a design was chosen for replacing the old bridge, but when the cost estimates came in at $110 million, well over the estimated costs, progress stalled.  The sharp rise in the cost of concrete materials and other petroleum-related products were the original "villains" cited for the runaway construction cost estimates.  In addition, Hurricane Katrina, which placed an inordinate demand on all construction materials, was blamed with increasing costs on all construction projects in the South.

But that was then.  This is now.

ODOT Director Jerry Wray was joined by KYTC Secretary Mike Hancock to commemorate the project's start and pay tribute to the amazing long-life of the existing bridge. The Mayors of Ironton and Russell also joined the two Governors for a ceremonial groundbreaking at the Ironton Depot Square.

In January, ODOT awarded a contract to Brayman Construction Corporation, a Pennsylvania company, for the total completion of the four-year project. An interim completion is expected by the fall of 2015.

C'mon...what was the new price?   $81 million....amazing! 



What a Concept! Encourage More Mediation
Last Thursday, the Surface Transportation Board (STB), the regulatory oversight board for the nation's railroads, issued a statement saying "while the Board has existing procedures in place for both mediation and arbitration, the proposed rules represent an initiative to refine and expand those rules."

The STB announced it was seeking public comment on its proposals "in an effort to promote greater use of alternative dispute resolution procedures for a wide range of issues. The Board believes that it will be to the mutual benefit of all stakeholders with business before the STB to reduce time and expense devoted to more formal litigation, and may provide enhanced access to the Board as well, particularly in matters involving relatively small disputes."

STB Chairman Daniel Elliott said, "The more often we can get parties to settle disputes before formal action, the more often we can save parties the cost, time and uncertainty of that formal action."

What a concept!

Also proposed by the STB is a new program "in which shippers and carriers could voluntarily agree to arbitrate certain routine disputes that come before the Board. The Board's mediation proposals would provide more rapid resolution of certain controversies, and at a lower cost, through the mutual agreement of involved parties. The arbitration proposal similarly would involve less time and lower costs than current, formal adjudicatory procedures."

The Assessment of Mediation and Arbitration Procedures, EP 699, is available for viewing and downloading and the Surface Transportation Board's website:  www.stb.dot.gov 



KBT Commentary: A Hidden Road Tax For Auto Repair.....
This week, a number of KBT members were in the District of Columbia (D.C.) for the 32ndAnnual KBT Fly-In. If you are like us...and you are....we tend to jump into a taxi cab to ride to a breakfast or lunch or dinner meeting. It's humid and "sticky" this time of year in D.C.  Hopefully, the cab has functioning air conditioning, and hopefully, it's clean.

We couldn't help but notice that some of the rides....within just a few blocks of Capitol Hill....were absolute teeth-rattling rides.

Well, folks, there is a real cost to that.  As U.S. lawmakers negotiate how to pay the bill for mending some really battered roads, the average American Joe is paying a hidden car tax from torn tires, misaligned front ends and even bent axles.

About two weeks ago, The Road Information Program (TRIP), a Washington-based research group, announced that motorists pay $67 billion annually for increased fuel consumption, body dents, worn tires and premature wear brought on by pitted roads and poorly resurfaced roads.

In a spirit of disclosure, we hasten to add that TRIP's board includes representatives from construction equipment makers like Caterpillar Inc. and John Deere & Co, as well as Vulcan Materials Company, a Birmingham based asphalt and concrete producer.  But their involvement doesn't give KBT pause. In fact, it makes us want to read the fine print even more closely.

Well, at $67 billion annually, that works out to $324 per licensed driver, according to Frank Moretti, a director of public policy for TRIP. The $324 figure is an average of all vehicles and can vary widely between cars and large commercial trucks, which are prone to much costlier damage.

Transportation Matters.

Transportation News May 4, 2012

House-Senate Conferees to Meet Next Tuesday on SAFETEA-LU
The U.S. Senate and the U.S. House of Representatives have been out on recess this past week, so the long-awaited Conference Committee to finalize a multi-year surface transportation and public transit bill (SAFETEA-LU) is ready to begin next week, Tuesday, May 8.  The meeting is set to begin at 3:00 p.m. in Washington, D.C.

During the past week, the House staff and the Senate staff have been hard at work sorting out the issues, and resolving those issues that aren't in dispute.

In the upcoming Conference Committee, the proceedings will be a tad bit unusual. Traditionally, Conference Committees negotiate the differences between the House-passed and the Senate-passed version of bill.  Then, the negotiated final bill is returned to the House and Senate for an up or down vote, with no amendments allowed. In this case, the Senate passed bill, S. 1813, the so-called MAP -21 bill, with overwhelming bipartisan support calling for 2 years of funding at $109 billion, or $54.5 billion a year. The House, on the other hand, essentially abandoned its multi-year reauthorization bill, HR 7, which called for 5 years of funding at $ 260 billion, or $52 billion a year, because they couldn't garner enough votes. Instead, the House passed only a three-month extension of the current law, HR 4348, which would extend the current programs at their current funding levels through September 30, 2011,  the end of the federal fiscal year. The Senate has not passed a similar three-month extension, so under current law, SAFTEA-LU is set to expire on June 30, 2012.

So what is a tad bit unusual about all of this?

Technically, House Conferees and Senate Conferees can only negotiate and address issues that are "in the scope" of their own legislation which has passed the House or Senate. Said another way, Conferees are limited to negotiating issues that are included in one or both of their bills. To be kind, it is not quite clear to anyone how the Conference Committee will craft a final bill, especially if House Conferees are strictly limited to the provisions of their legislation --- the 90-day extension.  So, what remains to be seen is how closely House Conferees are held to negotiating "in the scope" of their own legislation.

The KBT Position. KBT's Board of Directors position is: "KBT supports increased funding in a multi-year reauthorization of at least six years to fully meet our nation's transportation needs. We would reluctantly accept a reauthorization shorter than the current six years, provided it includes current or increased funding levels. If less federal transportation funding is an inevitable fact, and the 112th Congress cannot enact a 6-year, fully-funded, comprehensive reauthorization of SAFETEA-LU, then KBT supports a shorter-term comprehensive reauthorization of SAFETEA-LU, which minimizes the reduction in federal transportation funding to Kentucky. KBT further urges the 112th Congress to immediately explore opportunities for increased transportation revenues for a fully-funded transportation program for subsequent reauthorizations."

And forgive us, but we must mention that it has been 946 days since the multi-year authority of SAFETEA-LU expired on September 30, 2009. 



New KBT Member: Middleton Reutlinger

As a member of Louisville's legal community for more than 150 years, Middleton Reutlinger prides itself on personal working relationships with our clients.  Our lawyers serve clients throughout the United States and abroad.  The firm's client base is diverse and includes various businesses and industries including transportation, manufacturing, service, technology, insurance, health care, real estate and development. 

Middleton Reutlinger provides a range of legal services including counsel in business and corporate law, commercial and insurance litigation (all liability litigation including professional trucking), intellectual property, real estate and zoning, construction, employment, bankruptcy and creditors' rights, workers' compensation, tax, food and drug law.

Middleton Reutlinger's goal is to provide accessible service in an efficient manner. The firm understands each client's business and tailors its services to meet the ever-changing demands of the business environment. Maintaining a full complement of approximately 55 attorneys best allows the firm to achieve its goal of providing quality service at reasonable costs while maintaining personalized contact. This is accomplished by controlling internal costs and adopting innovative technology. The firm's philosophy is one of traditional service to the client with a modern approach to technology and the law.

KBT's contact with Middleton Reutlinger will be Brad Cunningham, who practices in the firm's business law practice group, providing sound and practical legal advice to companies in their daily operations and commercial transactions. Brad joined Middleton Reutlinger after serving as Corporate Counsel and Director of Risk Management for American Commercial Lines (ACL) a diversified transportation and manufacturing company. You may reach Brad at 502 584 1135 or e-mail him at bcunningham@middletonlaw.com  Brad's office is located at 401 South Fourth Street, Suite 2600, Louisville, Kentucky 40202.  

Welcome to KBT, Middleton Reutlinger ! 



KBT Directors Meet near Bowling Green
The KBT Board of Directors met last Friday, April 27, at The Club at Olde Stone, located on State Highway 231, just outside Bowling Green, Ky.

Kentucky Transportation Secretary Mike Hancock addressed the full Board, and complimented Kentucky's highway contractors for their amazing work, on completed, and major projects still underway across the Commonwealth. Secretary Hancock reminded KBT Board members that the 2012-2014 Road Plan was based on 2009 federal funding levels, because the Congress has not established a newer base line. The Secretary is hopeful that projects for 2012-2013 might actually exceed $2 billion, instead of $1 billion, because 2012-2013 could include awards for portions of the Louisville Bridges project.  Hancock also mentioned that the enacted budget requires the Cabinet to develop a financial plan for the Brent Spence Bridge project in Northern Kentucky before December 31, 2013, fund railroad crossing improvements, increase funding for public transit, and create a new funding mechanism to dredge and improve access for public riverports. In closing, Hancock said that Governor Beshear was generally pleased with the Executive Budget, and that he was especially pleased with the passage of SB 89, a safety-related bill to require passengers in 12-passenger and 15-passenger vans to be buckled up.

The Board also heard the 2011 Audit report from Barbara Lasky, a partner with the firm of Anderson, Bryant, Lasky and Winslow, PLC.  KBT's 2011 Audit received a "clean opinion", and the report was approved by the full Board.

Barry Barker (TARC), Chair of the KBT Public Transit Committee, reported that funding levels for public transit during the just-ended 2012 General Assembly have reverted to 2008 funding levels, an increase of approximately 35%. However, across the state, public transit agencies are facing the need to reduce service and increase fares, at a time when ridership is increasing by 7 to 10%.

KBT Safety Committee Chairman Jason Gabbard (The Allen Company) told the KBT Board that KBT played a key role in the passage of HB 328, the motorcycle safety bill, and SB 89, which requires all occupants in 15-passenger vans, and smaller, to be restrained by a seat belt. 

KBT Chairman Monty Boyd said that in 2012 KBT will reach out to all modes in all regions of the state. He noted that a looming issue on the horizon is a significant potential for decline in transportation revenues, due to increased fuel efficiency as well as vehicles that will not use gasoline or diesel as their chief fuel.  Chairman Boyd challenged KBT Board members to influence public officials on this important issue and not allow it to languish.

Following the Board meeting, KBT Board members, KBT members from the area, and prospective KBT members in the Bowling Green area had an informal hamburger and hot dog luncheon. Many of the County Judge/ Executives from the region attended, as well as state legislators and district field representatives from Senator McConnell's and Congressman Guthrie's offices.

A $40 Billion Infrastructure Project that's Worth It
In early April, Governing Magazine named NextGen, the federal government's high-tech plan to upgrade the nation's flight system from one based on 1940's radar technology to one based on 2010 satellite technology, as one of the government's top five transportation projects that's "in limbo".

Here's the problem. NextGen is a project with huge benefits.

The switch to NextGen, along with other associated technology improvements, would allow for more efficient flight paths, significant reduction in fuel consumption, smaller carbon emissions, and, importantly, less flight delays.

But it's not free. In fact, it comes with a high price tag: the Federal Aviation Administration (FAA) estimates that the infrastructure cost of NextGen through 2025 is $15 billion to $20 billion.  What's more, that's only for the "government side" of the equation. An additional $20 billion will be required, from the airlines, to equip their airplanes with the needed technology.

OK, that's $40 billion, which instantly makes NextGen one of the country's most expensive infrastructure projects and it's one that many transportation advocates overlook....and they shouldn't.

KBT wants to urge state and local leaders to keep this issue "on your radar". Without question, air travel is a cornerstone to successful economic development and a linchpin to your local economy.  The vast majority of Kentucky's 59 airports (both general aviation and commercial) are owned by County and City governments. So, any changes to those airports, either minor or substantial, could affect their operations and their ability to service corporate planes or corporate jets. 

Modernization of the nation's 60-year old flight system is long overdue.



CSX COO Says Economy Slowly Improving

This week, the Chief Operating Officer (COO) at CSX, Oscar Munoz, granted an interview to transportation journalist Cullen Roche. Because the freight rail sector plays such a crucial role in the economy, we thought that CSX's views of the macro trends in rail today were worth reading.

Journalist: Rail traffic continues to be an excellent indication of the health of the economy. What is CSX seeing today in terms of the recovery and growth in the USA?
Oscar Munoz: We continue to see indications of stabilization and slow, steady growth in the U.S. economy. Given that, we expect to meet increased demand for freight transportation services across the highly diversified set of industries that we serve. As such, CSX expects its business will grow at a rate above the economy, with 90 percent of the company's volume expected to remain stable or increasing in the second quarter of the year.

 


Journalist: Coal demand has really skewed some rail reports in recent months. Can you explain what's behind the decline and how this is impacting CSX's business?
Oscar Munoz: Historically, demand for electricity has been driven by overall economic performance and industrial production, coupled with the impact of weather patterns. This year, mild winter weather drove demand down for power generation in the eastern United States. Additionally, new technology and drilling techniques have driven natural gas prices to all-time lows, further impacting the traditional electricity demand equation and driving continued displacement of coal at some utilities. Although low natural gas prices are the dominant force in the current utility coal market, there is also uncertainty around a number of EPA regulations that will likely impact the sector. Not surprisingly, given those factors, CSX is seeing headwinds in its domestic utility coal business. The company expects these headwinds to be the strongest in the second quarter and then moderate throughout the balance of the year. Although domestic demand for utility coal is soft, CSX expects full-year export coal levels to remain at high levels similar to 2011, as global population and economic growth drives ever-increasing demand for export coal.

Journalist: Is CSX seeing any direct impact from the slow-down in China or the continuing crisis in Europe? If so, how is this impacting the domestic economy?
Oscar Munoz: While the rate of growth in China may temporarily moderate, China's expanding and evolving population continues to spur healthy energy demand and infrastructure expansion. This trend is expected to drive on-going exports of domestic materials, and, thus, a need for sustained transport of freight bound for China. Despite Europe's well-publicized issues, the continent continues to be an important destination for the products we ship. Although Europe's fiscal and economic policies have created some volatility in the markets, it continues to be an important destination for coal shipments. In fact, about two-thirds of our export coals goes to Europe and much of that is thermal coal, already under contract.

Journalist: What is your broad outlook for the rail industry and CSX's integral role in this industry going forward?
Oscar Munoz: CSX sees a wealth of opportunities to continue providing strong service to our diverse customer base, and, based on that foundation, we expect sustained strong business performance. Freight rail, and our nation's broader transportation network, will remain an integral component of the national economy - representing an efficient, secure, means of transporting essential materials both domestically and abroad. Freight rail is also the most environmentally-friendly way to ship goods over land. The health of CSX is rooted in the company's well-positioned transportation network and our ability to respond nimbly to challenges. We've come out of the recession a leaner and more efficient company, ready to meet the increased demand for products and resources in the United States and abroad, driven by population and economic growth around the world. From a high level, the economic backdrop remains favorable and the company expects solid growth in 58 percent of our markets, and stable conditions in 32 percent of our markets in the coming quarter.



CVG Airport: $36.5 Million Renovation

Beginning Tuesday, May 15, passengers traveling through the Cincinnati and Northern Kentucky International Airport (CVG) will see a new look designed to improve their experience and set the stage for future growth as the airport works to overcome airline flight cuts by its dominant airline, Delta.

The newly renovated Concourse A at CVG has been closed since 2010. So thanks to $36.5 million in concourse renovations, the Concourse will be more appealing and more efficient for both passengers and airlines. Airport Chief Executive Candace McGraw said that the community needs to know that CVG "is alive and well", despite the loss of hundreds of daily flights in recent years.

Passengers will board and disembark airplanes on new jet bridges featuring giant photographic murals of attractions, including the Cincinnati Museum Center, the Cincinnati Zoo, and the area's professional sports teams. An updated pedestrian tunnel offers past and present images of the region, taken by local photographers.  Improved cell service also is being added. There will be new ticketing and check-in counters, and new passenger seating areas, featuring electrical outlets and charging ports for almost every seat. Improvements have also been made in airport restrooms.

The reopening of Concourse A, which was shut down after Delta Airlines moved out of the building, will mean that all air service will be operated out of the same terminal.  The airport's dominant airline, Delta, and regional airline, Comair, will continue to fly out of Concourse B. The other airlines, namely American Airlines, United Airlines, US Air and Air Canada will move to the 16-gate Concourse A.



Toyota: Sales Momentum Continues in March and April
On April 3, Toyota reported March sales of 203,282 units, a 15.4% increase from last March and the best March results since 2008. For the first quarter of 2012, Toyota reported sales of 487,284, an increase of 12.3 percent. As a result of this strong consumer demand, Toyota set several records in March, including best all-time record Prius sales and the Camry's best March ever.

Then, this Tuesday, May 1, Toyota announced that their April sales rose 12%, and that its share of the market returned to levels it hasn't seen since before the March 2011 earthquake in Japan.

Overall, April sales started slowly for all automakers, but sales picked up toward the end of the month. It was the fourth straight month in which auto sales have run at an annual rate higher than 14 million.

Without question, Ford and General Motors benefited from Toyota's struggles last year.  However, now, they are seeing that advantage fade.  Consider this: Ford outsold Toyota by 2,314 vehicles during the month of April. However, only one month earlier, Ford was outselling Toyota by nearly 20,000 vehicles. GM's lead over Toyota is also declining. So how does this happen?  Most of Toyota's new growth is coming from car buys who are new to the brand and have never owned a Toyota before!



4th Congressional District? Watch KET on May 7 & 14

If you are a voter in the Fourth Congressional District where U.S. Congressman Geoff Davis is retiring, KBT wants to encourage you to watch Kentucky Educational Television (KET) on May 7 and May 14.

On May 7, Kentucky's Tonight's Bill Goodman will talk with the two 4th Congressional District Democratic candidates, William R. "Bill" Adkins and Greg Frank.

Then, on May 14, Goodman will interview all seven of the Republican candidates for the 4th Congressional District seat. They are: Marc Carey, Thomas Massie, Gary Moore, Brian D. Oerther, Walter Schumm, Alecia Webb-Edgington and Tom Wurtz.

KBT encourages you to listen and watch these candidates. If you get the opportunity ask them questions related to our transportation network and what they would do to improve it!

Check your local listings for the time of the show in your area.




KBT Commentary: A Glimmer of Hope

Whether you deal with difficult professional issues, or even difficult personal issues, it's always stark 'slap to the face' to find out that something that was once easy to accomplish is no longer a slam dunk.

Transportation legislation in the U.S. Congress ---once a slam dunk ---is no longer simple. In fact, it is quite complex...even damn difficult.

But KBT is consistently optimistic, and we believe there is a glimmer of hope that this Congress may actually pass a multi-year federal highway and public transit bill this year. That's right: this year.

After a half-dozen fits and starts, this coming Tuesday, an important House-Senate Conference Committee will take up the task of negotiating the differences between the House-passed bill and the Senate-passed bill.  It's won't be easy.  (See the first article in today's newsletter.)

Negotiations with unreasonable people, at times, can be worse than pulling teeth. Senator Barbara Boxer (California) and Representative John Mica (Florida) serve as the Chairs of their respective Committees in the Senate and House, and both Congressional leaders have had to deal with dozens of unrelated side issues, such as insurance coverage for birth control and eliminating foreign aid to Egypt....in a transportation bill!  

We hope that kindness and respect will be on the menu when the House-Senate Conference Committee members convene at 3:00 p.m. on Tuesday afternoon, May 8.  Certainly people can disagree on principle and KBT understands that. But we hope that decorum and civility win.  

We believe that people can proceed through difficult professional times and even personal times, with the aid of an upbeat positive, professional attitude. We believe, then, those who are taking the 'low road' will find their negative, poisonous comments are simply falling on deaf ears.      

This coming Tuesday afternoon: a glimmer of hope.

Transportation Matters.

 



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