New Department of Transportation Report on Highway, Transit Conditions Points to Need for More Investment

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DOT 12-14
Friday, February 28, 2014
FHWA Contact:  Nancy Singer – 202-366-0660
FTA Contact: Amy Bernstein – 202-366-0706

New Department of Transportation Report on Highway, Transit Conditions Points to Need for More Investment

WASHINGTON – U.S. Transportation Secretary Anthony Foxx today announced that a new report on the state of America's transportation infrastructure, 2013 Status of the Nation's Highways, Bridges and Transit: Conditions and Performance, confirms that more investment is needed to maintain and improve the nation's highway and transit systems.  Earlier this month, Secretary Foxx highlighted the need for transportation investment in a speech that took aim at America’s infrastructure deficit and identified ways to use innovation and improved planning to stretch transportation dollars as effectively and efficiently as possible.

“We have an infrastructure deficit in this country, and we need to create more jobs – improving our roads, bridges, and transit systems will provide help on both fronts,” Secretary Foxx said. “As the President said in his State of the Union address last week, first-class infrastructure creates first-class jobs. This report shows the difference we made thanks to the Administration’s unprecedented investment under the Recovery Act, but it’s also clear that much more remains to be done.”

The Department of Transportation's Conditions and Performance report, based on 2010 data, estimates all levels of government would need to spend between $123.7 billion and $145.9 billion per year to maintain and improve the condition of roads and bridges alone. In 2010, federal, State and local governments combined spent $100.2 billion on this infrastructure, including $11.9 billion in American Recovery and Reinvestment Act dollars.

The report also indicates that as much as $24.5 billion is needed per year to improve the condition of transit rail and bus systems.  In 2010, total spending to maintain and expand transit systems was $16.5 billion – a spending level also boosted temporarily by Recovery Act dollars.

“The Recovery Act contributed to the improved quality of our highways,” Federal Highway Deputy Administrator Greg Nadeau said.  “It makes a good case for more investment - every dollar produces results for the American people.” 

According to the report, travel on pavements with good ride quality rose from 46.4 percent in 2008 to 50.6 percent in 2010.  A major factor in this increase was the one-time funding provided under the Recovery Act, a large share of which was directed toward pavement resurfacing.  This 4.2 percent increase represents the highest two-year jump ever since the metric was first used in 1995.  While the report shows overall pavement and bridge conditions have improved in many areas, the improvements have not been uniform across the system.  

The report also finds that the nation’s state of good repair and preventive maintenance backlog for transit is at an all-time high of $86 billion, and that it is growing by an estimated $2.5 billion each year. An additional $8.2 billion over current spending levels from all levels of government is needed annually to spend down the current backlog over the next 20 years. While some transit systems are still operating rail cars that are over 30 years old, the report finds that over three-quarters of the need for repairs affects other facets of our transit systems, such as rail stations, trestles, and power substations. Meanwhile, State and local governments are shouldering more than half the cost of annual investments to preserve and grow the nation’s transit systems.

“The United States cannot grow and compete in the 21st century without a modern public transportation infrastructure that connects citizens, their communities, and their employers with opportunities to succeed and prosper,” said Deputy Federal Transit Administrator Therese McMillan. “Making a down payment on this substantial backlog is critical to not falling farther behind in our commitment to modernize the transportation infrastructure that tens of millions of riders depend on every day.”

The investment estimates for roads and bridges are based on ranges, which is new to the 2013 report. The higher ends are based on state-provided forecasts, which were used in past reports – they average out to annual growth of 1.85 percent per year. The lower ends presume vehicle miles traveled (VMT) will grow at an average annual rate of 1.36 percent per year, which is consistent with the average annual growth in the past 15 years.  

Conditions and Performance is a biennial report to Congress that provides information on the physical and operating characteristics of the highway, bridge and transit components of the nation's surface transportation system.

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Pratt & Whitney Canada and Milestone Aviation Group Sign US$ 75 Million, 15-Year Deal for New Helicopter Engine Fleet Management Program

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February 27, 2014
Pratt & Whitney Canada and Milestone Aviation Group Sign US$ 75 Million, 15-Year Deal for New Helicopter Engine Fleet Management Program

ANAHEIM, CALIFORNIA--(Marketwired - Feb. 27, 2014) - Pratt & Whitney Canada (P&WC), a United Technologies Corporation company (NYSE:UTX), and Milestone Aviation Group, a global leader in helicopter leasing, today announced a US$ 75 million, 15-year agreement under which P&WC will offer its Flexible Turboshaft Engine Fleet Management program to Milestone customers.

The agreement, signed today at HAI Heli-Expo, will provide P&WC's customized engine maintenance support to helicopter operators worldwide leasing through Milestone. Initially 25 helicopters with P&WC PT6C-67C engines will be covered under the fleet management program with the intent to expand the scope to include PW210S, PW210A, PT6C-67E, PT6B-37A, PT6T and PW207C engine models in the future.

"With more than 3,700 P&WC-powered helicopters flying globally, the helicopter market is a vital part of our portfolio and effectively supporting the needs of these operators is paramount," said John Di Bert, Vice President, Customer Service, P&WC. "We are particularly excited to join forces with Milestone - a market leader that leverages both its scale and its deep operating expertise to provide its customers with unique benefits. Together, we will deliver a fleet management program that is tailored specifically for individual operators and provides the peace of mind and predictability of guaranteeed future maintenance costs."

The engine fleet management program will also offer helicopter operators who lease through Milestone a turnkey contractual framework that easily facilitates enrollment.

"The agreement to deliver P&WC's fleet management program to helicopter lessees is a testament to our mission to provide unique solutions to our customers that help preserve their capital, reduce their risk and improve their cash flow," said Matthew Harris, Chief Operating Officer, Milestone Aviation Group. "Pratt & Whitney Canada shares our passion for delivering exceptional customer service. Backed by their 40 years of Turboshaft engine expertise, we have created a flexible offering that best meets the support requirements of the growing number of operators benefiting from helicopter leasing."

The longstanding relationship between P&WC and Milestone, which started with the first contracted PW206C in 2010, has expanded to include more than 160 P&WC engines across all variants.

About Pratt & Whitney Canada (P&WC)

Founded in 1928 and a global leader in aerospace, P&WC is shaping the future of aviation with dependable, high-technology engines. Based in Longueuil, Quebec (Canada), P&WC is a wholly owned subsidiary of United Technologies Corp. (UTC). UTC is a diversified company that provides a broad range of high-technology products and services to the global aerospace and building systems industries.

About Milestone Aviation Group

Milestone Aviation Group is the global leader in helicopter leasing. Since launching in August 2010, and as of December 31, 2013, Milestone has acquired 143 aircraft valued at over US$ 2.2 billion and closed leases with 26 operators in over 20 countries on six continents. The company has a forward order book of over 130 firm and option aircraft valued at over US$ 3.0 billion. These delivery positions of in-demand helicopters are made available for lease globally. Milestone partners with helicopter operators worldwide and supports them through 100 per cent operating lease financing. The company provides financing for helicopters, serving a variety of industries, including offshore oil and gas, search and rescue, emergency medical services, police surveillance, mining and other utility missions. Further information is available at www.milestoneaviation.com.

This press release contains forward-looking statements. Forward-looking statements involve uncertainties, risks and assumptions, since these statements include information concerning Milestone's possible or assumed future results or performance, operations, business strategies, financing plans and potential growth opportunities. Forward-looking statements speak only as of the date they were made, and Milestone undertakes no obligation to update publicly or to revise any forward-looking statements because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed herein might not occur and are not guarantees of future performance. Milestone's actual results and performance could differ substantially from those anticipated in its forward-looking statements.

Follow us on Twitter at https://twitter.com/pwcanada for the latest news and updates.


CONTACT INFORMATION:
MEDIA CONTACT FOR PRATT & WITHNEY CANADA
Catherine Fisette, P&WC
450-647-7-9411 x 7-7074
catherine.fisette@pwc.ca
www.pwc.ca

or

MEDIA CONTACTS FOR MILESTONE AVIATION GROUP
Eric Berman / Nathan Riggs of Kekst and Company
+1 212-521-4894 / +1 212-521-4804
eric-berman@kekst.com / nathan-riggs@kekst.com
INDUSTRY: Aerospace and Defense - Aircraft, Aerospace and Defense - Electronics and Communications, Aerospace and Defense - Space, Transportation and Logistics - Air Freight

BTS Releases December North American Freight Numbers

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BTS 10-14
Thursday, February 27, 2014
Contact: Dave Smallen
Tel: 202-366-5568

 

BTS Releases December North American Freight Numbers:
Three of Five Modes Carried More U.S.-NAFTA Trade in December 2013 than in December 2012 

Three of the five transportation modes – truck, vessel and pipeline – carried more U.S.-NAFTA trade in December 2013 than in December 2012, according to the December TransBorder Freight Data released today by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).  

BTS reported that pipelines showed the most year-to-year growth at 21.7 percent as the value of overall U.S. trade with its North American Free Trade Agreement (NAFTA) partners Canada and Mexico rose 6.4 percent from year to year.  

Trade by Mode

Truck, which carries nearly three-fifths of U.S.-NAFTA trade and is the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners, rose 7.2 percent year-to-year while rail declined 2.3 percent. Vessel rose 10.7 percent and air declined 3.2 percent.

Trucks carried 57.2 percent of the $90.1 billion of U.S.-NAFTA trade in December 2013 accounting for $26.3 billion of exports and $25.2 billion of imports. While the value of freight carried by rail decreased from year-to-year, rail was still the second largest mode, at 14.9 percent, followed by vessels at 11.2 percent, pipeline at 7.7 percent and air at 4.0 percent. The surface transportation modes of truck, rail and pipeline carried 79.7 percent of the total NAFTA freight flows. 

Trade with Canada

U.S.-Canada trade by pipeline, of which 89.2 percent was imported, increased the most of any mode from December 2012 to December 2013, growing 21.9 percent. U.S.-Canada pipeline trade comprised 95.2 percent of total U.S.-NAFTA pipeline trade in December. Vessel freight exports to Canada increased by 64.8 percent from December 2012 due to an increase in exports of mineral fuels. 

Trade with Mexico

The value of U.S.-Mexico trade by pipeline had the largest percentage increase of any mode from December 2012 to December 2013, growing 17.5 percent. Freight moved by vessel and air between the U.S. and Mexico increased by 14.8 percent and decreased by 0.2 percent respectively.

See BTS Transborder Data Release for summary tables and additional data. See North American Transborder Freight Data  on the BTS website for additional data for surface modes since 1995 and all modes since 2004.           

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President Obama, DOT Secretary Foxx Announce $600 Million for Sixth Round of TIGER Funding

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DOT 23-14
Wednesday, February 26, 2014
Contact: Press Office
Tel: 202-366-4570 

President Obama, DOT Secretary Foxx Announce $600 Million for Sixth Round of TIGER Funding  

ST. PAUL – U.S. Transportation Secretary Anthony Foxx will join President Barack Obama today to announce that $600 million will be made available to fund transportation projects across the country under a sixth round of the U.S. Department of Transportation’s highly successful Transportation Investment Generating Economic Recovery (TIGER) competitive grant program. The announcement will be made at the Union Depot in St. Paul, which received $35 million in the first round of TIGER to renovate the facility and restore tracks. Combined with roughly $480 million in federal funding for the Central Corridor light rail transit line, St. Paul’s Union Depot is proof of the impact that transportation investment can make, leading to job creation, downtown revitalization and economic growth. 

“President Obama knows that transportation means opportunity for so many Americans,” said U.S. Transportation Secretary Anthony Foxx. “TIGER investments answer the President’s challenge to expand opportunity through a strong transportation system that connects Americans with a better way of life.”  

The TIGER 2014 grant program will place an emphasis on projects that support reliable, safe and affordable transportation options that improve connections for both urban and rural communities, making it easier for their residents to reach work, school and other ladders of opportunity. While continuing to support projects of all types, DOT will prioritize applications for capital projects that better connect people to jobs, training and other opportunities, promote neighborhood redevelopment and reconnect neighborhoods divided by physical barriers, such as highways and railroads. 

The highly competitive TIGER program, which began as part of the American Recovery and Reinvestment Act, offers one of the only federal funding possibilities for large, game-changing multi-modal projects. These federal funds leverage money from private sector partners, states, local governments, metropolitan planning organizations and transit agencies. The $474 million 2013 TIGER round alone supported $1.8 billion in overall project investments. 

In additional to supporting capital grants, Congress has provided DOT with the flexibility to use up to $35 million of TIGER funds for planning grants, the first time since the 2010 round. In addition to supporting the planning of innovative transportation, these funds can support regional transportation planning, freight and port planning and programmatic mitigation approaches that increase efficiency and improve outcomes for communities and the environment. 

Since 2009, the TIGER program has awarded $3.5 billion to 270 projects in all 50 states, the District of Columbia and Puerto Rico – including 100 projects to support rural communities. Demand has been overwhelming, and during the previous five rounds, the Department of Transportation received more than 5,300 applications requesting nearly $115 billion for transportation across the country. 

Congress provided the most recent funding as part of the bipartisan Consolidated Appropriations Act of 2014, signed by President Obama on January 17, 2017. TIGER applications are due April 28. Click here to learn more about TIGER 2014 and to view DOT’s Notice of Funding Availability.  

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DOT Issues Emergency Order Requiring Stricter Standards to Transport Crude Oil by Rail

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DOT 22-14
Tuesday, February 25, 2014
Contact: Press Office
Tel.: 202-366-4570 

DOT Issues Emergency Order Requiring Stricter Standards to Transport Crude Oil by Rail
Today’s action marks the 4th emergency order or safety advisory on crude oil in the last seven months

WASHINGTON – The U.S. Department of Transportation (DOT) today issued an Emergency Order requiring all shippers to test product from the Bakken region to ensure the proper classification of crude oil before it is transported by rail, while also prohibiting the transportation of crude oil in the lowest-strength packing group.  

“Today we are raising the bar for shipping crude oil on behalf of the families and communities along rail lines nationwide —if you intend to move crude oil by rail, then you must test and classify the material appropriately,” said DOT Secretary Anthony Foxx. “And when you do ship it, you must follow the requirements for the two strongest safety packing groups. From emergency orders to voluntary agreements, we are using every tool at our disposal to ensure the safe transportation of crude.”  

Emergency orders are issued to protect the public and environment from the likelihood of substantial harm created by an imminent hazard. Today’s Emergency Order, the fourth from DOT in less than a year, was issued in response to recent derailments involving trains carrying crude oil from the Bakken region and out of concerns over proper classification that are currently under investigation as part of Operation Classification, also known as the “Bakken Blitz.”  

Effective immediately, those who offer crude oil for transportation by rail must ensure that the product is properly tested and classified in accordance with federal safety regulations. The Emergency Order also requires that all Class III crude oil shipments be designated as Packing Group I or II, thereby requiring the use of a more robust tank car. Packing Group III, a lower risk designation, will not be accepted, until further notice.  

Shippers are required to use nine hazard classes as a guide to properly classify their hazardous materials. Proper classification will ensure that the material is placed in the proper package and that the risk is accurately communicated to emergency responders. Shipping crude oil – or any hazardous material – without proper testing and classification could result in material being shipped in containers that are not designed to safely store it, or could lead first responders to follow the wrong protocol when responding to a spill. 

In addition to Operation Classification, which includes crude oil spot inspections and investigations, PHMSA will be in Minot, North Dakota this week conducting a classification workshop. Field personnel will present training at the 60th Annual State Fire School sponsored by the North Dakota Firefighters Association to provide information about hazmat response, including how to use the Emergency Response Guidebook.  

Rail safety is a national priority, and DOT continues to work aggressively across multiple fronts to enforce its requirements and reduce risks regarding the safe transport of all materials. PHMSA and the Federal Railroad Administration have issued several safety advisories related to the safe transport of crude oil by rail, including the recent January 2 Safety Alert and is currently engaged in the ongoing rulemaking to improve the design of the DOT 111 tank car. In August 2013, PHMSA and FRA launched Operation Classification in the Bakken Shale region to verify that crude oil was being properly classified and announced the first proposed fines associated with that ongoing investigation last month. Additional activities include unannounced spot inspections, data collection and sampling at strategic locations that service crude oil.

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Click here to view (pdf) Emergency Restriction – Prohibition Order (Docket DOT-OST-20014-0025

Click here to view (word file) Emergency Restriction – Prohibition Order (Docket DOT-OST-20014-0025

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BTS Releases December Passenger Airline Employment Data

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BTS 09-14
Thursday, February 20, 2014
Contact: Dave Smallen
Tel: 202-366-5568

 BTS Releases December Passenger Airline Employment Data; December 2013 Employment Up 0.3 Percent from December 2012 

U.S. scheduled passenger airlines employed 380,809 workers in December 2013, 0.3 percent more than in December 2012, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today. December was the first month that full-time equivalent (FTE) employment for U.S. scheduled passenger carriers was higher than the same month of the previous year after 15 consecutive months of declines. 

BTS reported that the December 2013 FTE total for scheduled passenger carriers was 1,233 more than in December 2012. Scheduled passenger airline categories include network, low-cost, regional and other airlines. 

The five network airlines that collectively employ two-thirds of the scheduled passenger airline FTEs reported 0.4 percent more FTEs in December 2013 than in December 2012, the first month with more FTEs than the same month of the previous year for the group after 16 months of declines. United Airlines and American Airlines reduced FTEs from December 2012 while US Airways, Alaska Airlines and Delta Air Lines increased FTEs. Network airlines operate a significant portion of flights using at least one hub where connections are made for flights to down-line destinations or spoke cities.

Of the six low-cost carriers, four - Spirit Airlines, Allegiant Airlines, Virgin America and JetBlue Airways - reported an increase in FTEs from December 2012 while two - Frontier Airlines, Southwest Airlines - reported a decline. Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average.

See Passenger Airline Employment press release for summary tables and additional data. Historical employment data can be found on the BTS web site.

 

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