(Source:  Associated Press via Forbes)

(Source: Reuters) 

 This is ugly.For a picture of how rapid and steep the decline in U.S. manufacturing and retail sales has been in this recession, there are few better sectors to look at than transport.

Freight volumes — everything from raw materials to durable goods — have plummeted virtually across the board, making forecasting demand near impossible.

“We’ve downgraded our forecasts several times already this year — and it’s only March,” said John Levine, president of Pinsly Railroad Co, which owns short-line railroads in Florida, Massachusetts and Arkansas. “Business has fallen off in a way that none of us have seen.”

To weather the slump, Pinsly has cut back hours for workers so all of its 150 employees are still working, he added.

According to data from the Association of American Railroads (AAR), rail carload traffic for the first two months of 2009 was down 15.8 percent.

Historical data shows the drop in U.S. manufacturing activity eclipses the recessions of the 1980s and 1970s and in terms of speed and scale it is comparable with — but not as bad as — the Great Depression before World War Two.

(Source: Reuters)

Denise Blackerby is hitting the road again. When retail gas prices scaled historic peaks above $4 a gallon last year, she found she could no longer make monthly trips from the Dallas area to Houston in her Ford Explorer SUV to visit her family.

 “When gas was $4 a gallon, I didn’t go anywhere. Now it’s all good,” Blackerby, who is 44 and works in the information technology industry, told Reuters as she bought soft drinks at a Shell gas station in Grapevine, a town near Fort Worth.

With U.S. pump prices now averaging below $2 a gallon, she’s making those regular Houston trips again.

As gasoline prices surged to record highs last year, drivers in the world’s top energy consumer cut fuel use at the greatest pace since 1983.

For U.S. consumers pinched by the economic crisis, falling gasoline prices have created what some analysts call a sort of “stimulus package” that has pumped billions of dollars in disposable income back into their wallets.

(Source: American.com)

How did India’s Huey Long become its Jack Welch?

(Source: Bizjournal.com)

The federal stimulus funds, furnished through the American Recovery and Reinvestment Act, will help the state proceed with 29 construction projects throughout the state. The Texas Department of Transportation will leverage the $1.2 billion in stimulus spending to build more than $2.6 billion in new transportation projects throughout the state.

In San Antonio, the state will proceed with the construction of new interchange lanes along U.S. Highway 281 and Loop 1604. The total project will cost $140 million to build. TxDOT will combine $60 million worth of stimulus dollars with $80 million worth of existing funds to proceed with construction. TxDOT also is combining $8.1 million in stimulus funds with $4 million in existing funds to construct new roadway lanes along Loop 1604 from FM 78 to Graytown, which is located near Randolph Air Force Base.

(Source: Financial Times)

“History reminds us,” President Barack Obama told both houses of the US Congress on Tuesday night, “that at every moment of economic upheaval and transformation, this nation has responded with bold action and big ideas.” By “the nation”, Mr Obama means “the government”. We can tell by the episodes he uses to make his point: the establishment of universal public education, the GI Bill of Rights and – alluded to but not named – the Highway Act of 1956, at the time of its passage the largest public works project in US history.

Mr Obama’s praise for the Highway Act is disturbing. In arguments over his stimulus package and his preliminary budget released on Thursday, Republicans have made the lazy assumption that government intervention in the economy can never succeed. Mr Obama shows signs of the opposite error – believing it can never fail.

The Highway Act probably has more defenders than detractors. But Mr Obama should be among the latter. The act, which budgeted $25bn in federal money to build 41,000 miles of motorway, exacerbated the very problems Mr Obama has been most eager to solve – spoliation of the environment, dependence on foreign oil, overburdening of state and local budgets, abandonment of the inner-city poor and reckless speculation in real-estate development, to name a few.

A lot of people complain today about the rump of Republican disbelievers in Keynes, feckless though they may be, who fiddle while Rome burns. There was no hint of such heresy in 1956. The Senate passed the bill 89-1. Otherwise, the political climate bore some resemblance to our own: conformism bred of confusion. A 40,000 mile highway network had been on the wish list of the armed forces since 1944. Eisenhower was a big backer, and had hopes of justifying it as a stimulus during the recession of 1954. That downturn was long past when the bill came to a vote, but the vested interests remained, and so did the fear that one’s constituents might think it a bit communist to vote against a highway bill.

Click here to read the entire article.  (Free registration required at FT.com)

(Source:  National Journal’s Transportation Blog)

On Feb 26, the National Surface Transportation Infrastructure Financing Commissionissued its report on how to fund the next highway and transit bill. It called for Congress to enact a 10-cent-per-gallon increase in the gas tax (and 15-cent-per-gallon increase in the diesel tax) in the next surface transportation bill while preparing to convert to a system that, by 2020, would charge people according to how many miles they drive.

This blog is fortunate to have commission Chairman Robert Atkinson and members Kathy Ruffalo and Geoffrey Yarema among its expert contributors. This week, instead of responding to a question, expert bloggers are invited to post their questions about the report on the blog, and Rob, Kathy and Geoff have agreed to spend the week answering them. So fire away, everyone.

Click here to read the responses/questions on this bloggers “interactive” Q & A.

(Source: StreetsBlog)

We want mass transit in American cities, right? Right. So how are we going to pay for it?

(Source: McKinsey Quarterly)

Idris Jala led the state-controlled carrier from the brink of bankruptcy to record-breaking profits. Now he wants it to become what he calls a “five-star value carrier.”

(Source:  The Brookings Institution)