The super-secret super-duper highway plan

For somebody who studies highway stuff all the time, I have to admit, an article in today's NY Times blew me away. I can't believe I haven't heard of this before, but apparently there are some out there who believe that the "New World Order," or at least a shady cabal of profiteers, have a super secret plan to build a super-duper highway that will connect Mexico and Canada, by way of the good ol' U.S.A. It is apparently just the latest in a nefarious scheme to scuttle our sovereignty and create a huge North American country dominated by non-white anglo-saxon protestants. Okay, well, that's a little over-the-top for me. My guess is that those who believe this conspiracy theory are confusing it with the huge Texas east-west highway plan that is on the table. The next thing you know, we'll find out that Yale's Order of the Skull and Bones and the Knights Templar are behind this. Hey, maybe I can write a book called "The Super-Duper Highway Code," and make a million off the movie rights. Your comment?

Highway materials up

The price of construction materials related to road-building continues to rise. According to ARTBA, the cost of highway and street construction materials moved closer in line with inflation in June, increasing 3.6 percent compared to the same month last year. Construction sand, gravel and crushed stone increased 8.7 percent, while cement was up 6.3 percent, and ready mix was up 4.4 percent. Asphalt paving and block was up 7.3 percent. Your comment?

NSSGA addresses sustainability

NSSGA has jumped on the sustainability bandwagon. The association's Board of Directors has unanimously approved Guiding Principles for Sustainability for its members. These Guiding Principles, developed by a multi-divisional task force of the association, define sustainability for the aggregates industry as a business approach that integrates environmental, social and economic aspects to ensure the long-term supply of aggregate materials to society, according to the association. The board further recognized that sustainability is a developing issue in the markets where NSSGA members operate and sustainable practices in our industry are necessary today to preserve the potential for a quality life for future generations.

NSSGA’s Sustainability Guiding Principles address the three pillars of sustainability – environmental, social and economic – in the mining life cycle context of an aggregate operation. Overarching Practices describe, among others, the overall commitment of the industry to reinvest in the communities in which we operate, to adhere to the highest ethical business standards, to minimize life cycle impacts, and to demonstrate a strong and unwavering commitment to safety, health and the environment at our operations. The Guiding Principles also encourage specific sustainable practices during the planning, operational and closure phases of the life of an aggregate operation.

The document also describes the business case for implementing sustainability practices. The long-term viability of the aggregates industry is dependent on obtaining and maintaining a social license to operate. These licenses are based on discretionary decisions by local government bodies that are heavily influenced by political/public opinion. NSSGA member companies will enhance their ability to obtain these licenses when applying sustainability guidelines. Public resource agencies are now implementing frameworks based on sustainable development. NSSGA member companies will increase their abilities to compete effectively by implementing NSSGA’s Sustainability Guiding Principles. These guidelines emphasize the efficient use of resources, which reduces costs and contributes to profitability. Implementing sustainability guidelines will help to coordinate and improve the effectiveness of multi-disciplinary programs such as community relations, environment, safety and health, operations and legal issues at NSSGA member companies, according to the association. Your comment?

Fatality #15

On July 18, 2007, MSHA reported that the metal/nonmetal segment experienced its 15th fatality of the year. In this case, a 42 year-old front-end loader operator, with 19 years experience, was fatally injured at a dredge operation. He was operating one of two front-end loaders that were transporting a section of pipeline to the dredge pond. While the victim's front-end loader was positioned near the edge of the pond, a large section of the sandy bank sloughed off and submerged the loader. The victim was entrapped inside the loader cab and drowned. Your comment?

Focus on aging infrastructure

The recent pipeline explosion in New York has once again focused attention on the nation's deteriorating infrastructure. "Our highway system is aging, our cities are choked with congestion, our transit systems are inadequate, our ports function poorly, and our railroads are at capacity," said Stephen E. Sandherr, chief executive officer of the Associated General Contractors of America (AGC) today during a press conference in Washington, D.C. Sandherr commented on the findings of a new vision report released today by AGC and 16 other organizations, aimed at helping the National Surface Transportation Policy and Revenue Study Commission develop recommendations to meet growing future domestic transportation needs. "There is a funding crisis, congestion crisis and safety crisis looming," continued Sandherr. "It's now time to make the tough choices that will carry our nation forward for the next 50 years."

The vision articulated in the document released today points out that the primary objectives of the future transportation system must be to reduce congestion, position the U.S. to remain globally competitive and meet the growing mobility needs of the 21st Century. To achieve this objective the vision document states that the U.S. must preserve and modernize the existing system, improve its performance, and add substantial capacity in highways, transit, rail, airports and seaports. Substantial increased investment will be necessary to achieve these goals.

To take some of the debate over funding increases out of the political arena, among the things the vision calls for is the creation of a highway user rate commission, recommended by AGC's reauthorization task force. This commission would, on a regular basis, set the user rate fees at a level necessary to maintain and improve the transportation system. Sandherr added, "I urge Congress, the Administration and public policy makers nationwide to give these recommendations serious consideration and to make the tough choices necessary to fulfill this transportation vision." Your comment?

IMA-NA opposes legislation

The Industrial Minerals Association-North America (IMA-NA) reports that the House Workforce Protections Subcommittee Chairwoman Lynn Woolsey (D-CA) plans to hold a legislative hearing on the Supplemental Mine Improvement and New Emergency Response Act of 2007 (S-MINER)(H.R. 2768) and the Miner Health Enhancement Act of 2007 (H.R. 2769) on Thursday, July 26, at 2:00 p.m Eastern.  IMA-NA opposes the bills as premature, unnecessary and unjustified. Between now and the hearing the organization will be meeting with members, staff, and other interested parties to make them aware of its concerns with the bills, which they say impose substantial new legislative mandates that will divert attention and resources from implementation of the MINER Act passed just last year. Your comment?

Highway funding update

Highway funding is looking better, all of a sudden. According to NSSGA, The House Committee on Appropriations HAS approved A FY '08 appropriations bill for transportation, housing and urban development and related agencies. The committee approved the mark by voice vote after little debate. The bill fully funds the highway and transit guarantees contained in the current transportation authorization bill. The mark contains $40.2 billion for highways, which is $600 million above the president's request and $1.25 billion above FY '07 levels. The bill does not include an administration proposal to eliminate $631 million in revenue aligned budget authority (RABA). The bill also contains $3.6 billion for the Airport Improvement Program to continue infrastructure improvements, for an increase of $850 million above the president's request and $85.5 million above FY '07. In the Senate, the Subcommittee on Transportation and Housing and Urban Development (HUD) Appropriations approved $40.2 billion for highways in FY '08 as well, largely mirroring the House bill. The full committee approved the bill. Your comment?

Highway Trust Fund in trouble

I wrote about this last year and it's starting to come true: The Highway Trust Fund is in trouble. The Bush administration released its mid-session budget review which updates the data included in the President's budget released in February. The budget estimate released in February forecasted a $700 million Highway Trust Fund (HTF) shortfall in Fiscal Year (FY) 2009. Today's update increases the forecasted shortfall to more than $4 billion dollars in FY 09. "America's transportation system is the heart of our country's economy and to neglect it is a disservice to our nation," said Stephen E. Sandherr, chief executive officer of the Associated General Contractors of America (AGC). "The cuts in FY 2009 from the promised level of $43.4 billion to about $27 billion, would result in a 37 percent reduction in spending on our nation's infrastructure. Neglecting our transportation infrastructure will only make it more difficult for America to compete in the world market." The mid-session review also increased the forecast shortfall to $9 billion in 2010 and to $15 billion in 2011. Your comment?

Charlie Hawkins retires

Charles E. “Charlie” Hawkins, III, NSSGA’s long-time executive vice president and COO, a veteran of nearly 40 years in the aggregates industry, has resigned for health reasons. Calling it a tough decision, but the right one, Hawkins said his resignation came after physicians advised him in no uncertain terms to slow down. Charlie will be missed for his common sense take on the industry and the professionalism with which he did his job. I suspect he will show up somewhere in the industry, in the future. Trust me on that. Your comment?

Non-residential gains

At least non-residential is hot. Reed Construction Data says that the year-to-date value of construction starts through May 2007, excluding residential contracts, totaled $123.486 billion, 18.2 percent higher than in 2006. Starts increased 3.9 percent from April to a record high total. Preliminary estimates suggest that this non-residential gain will be more than offset by a decline in the value of residential starts. Separately, the Census Bureau reported that job-site construction spending through April was13.1 percent above the same months in 2006. Reed Construction Data expects the recent surge in starts to lead to quicker growth in construction spending later this year, especially for heavy construction projects. However the collapse in the housing market will keep total construction activity, after inflation, about unchanged in 2007. Roads and highways were up 8.2 percent.Your comment?

Highway work flat

Although aggregates production is down, the value of work completed on state and local highway and street construction projects was $75.8 billion in May, up 0.5 percent from April's revised total of $75.4 billion, according to AEM. Compared to May 2006, the value of work increased 3.6 percent. The value of pavement work in May fell 2.3 percent to $46.6 billion. The value of work done on bridges rose 6.6 percent to $23.6 billion. Your comment?