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U.S.DOT’s Bureau of Transportation Statistics Releases Report on America’s Container Ports

June 19, 2009 at 10:37 pm

Image Courtesy: USDOT

The Bureau of Transportation Statistics of the Research and Innovative Technology Administration today released “America’s Container Ports: Freight Hubs That Connect Our Nation to Global Markets”, an overview of the movement of maritime freight handled by the nation’s container seaports in 2008 and trends in maritime freight movement since 1995.  The report covers the impact of the recent U.S. and global economic downturn on U.S. port container traffic, trends in container throughput, concentration of containerized cargo at the top U.S. ports, regional shifts in cargo handled, vessel calls and capacity in ports, the rankings of U.S. ports among the world’s top ports, and the number of maritime container entries into the United States relative to truck and rail containers.

The U.S. marine transportation system continues to handle large volumes of domestic and international freight in support of the nation’s economic activities. The demand for freight transportation responds to trends in global economic activity and merchandise trade. When U.S. businesses produce more goods, the demand for freight transportation services to move raw materials and finished products to markets and customers around the country and world will increase. When economic conditions result in less production, the demand for transportation services will decrease.

This report provides an overview of the movement of maritime freight handled by the nation’s container seaports in 2008 and summarizes trends in maritime freight movement since 1995. It covers the impact of the recent U.S. and global economic downturn on U.S. port container traffic, trends in container throughput, concentration of containerized cargo at the top U.S. ports, regional shifts in cargo handled, vessel calls and capacity in ports, the rankings of U.S. ports among the world’s top ports, and the number of maritime container entries into the United States relative to truck and rail containers. The report also presents snapshots of landside access to container ports, port security initiatives, and ongoing maritime environmental issues.

The principal findings of the report include the following:

  • Maritime freight handled by U.S. container ports fell sharply towards the end of 2008, and the decline continued into the first quarter of 2009. Total U.S. containerized cargo for December 2008 was down 18 percent compared with December 2007. The decline was severe at the nation’s two leading container ports, Los Angeles and Long Beach, which experienced 13 and 25 percent drops, respectively.
  • Overall in 2008, U.S. container ports handled 28.2 million loaded TEUs (20-foot equivalent units—a measure for counting containers), a 3 percent drop from the 29 million TEUs handled in 2007.
  • In 2008, containerized freight throughput fell for each of the leading ports in the Pacific/west coast, Atlantic/east coast, and gulf coast regions. West coast ports had a 5 percent decline, east coast ports a less than 1 percent decline, and gulf coast ports a 3 percent decline.
  • The consequences of the 2008 decline in container throughput at the nation’s seaports reached beyond the marine ports and terminals, affecting containership fleet capacity, the railroads and commercial trucks that service the seaports, and the inland warehouses and distribution centers that provide logistical support for the entire multimodal freight supply chain.
  • In 2008, the decline in maritime containerized cargo impacted international intermodal containers handled by the nation’s Class I railroads, which fell 7 percent from 2007. It also affected overall trucking activity, which saw record declines in the second half of 2008.
  • Despite the 2007 to 2008 declines, today 1 container in every 10 that is engaged in global trade is either bound for or originates in the United States, accounting for 10 percent of worldwide container traffic.
  • On a typical day in 2008, U.S. container ports handled an average of 77,000 TEUs, up from 37,000 TEUs per day in 1995.
  • In 2008, the top 10 U.S. container ports accounted for 86 percent of containerized TEU imports and exports, up from 78 percent in 1995.
  • In 2008, 3 U.S. ports—Los Angeles, Long Beach, and New York/New Jersey—ranked among the world’s top 20 container ports when measured by TEUs, placing 16th, 17th, and 20th, respectively.
  • In 2007, there were nearly 20,000 containership calls at U.S. seaports, accounting for 31 percent of the total oceangoing vessel calls made by all vessel types at U.S. ports.
  • In 2007, there were about 12 million oceanborne container entries into the United States, down slightly from 2006 but still double those of 2000.
  • In April 2009, a U.S.-flagged container vessel with 20 American sailors was hijacked by pirates off the coast of Somalia, highlighting the challenge of fully securing maritime cargo throughout the entire global logistics supply chain.

The report can be found at:
http://www.bts.gov/publications/americas_container_ports/2009/

    REGISTER NOW! TISP Summer Forum: Enhancing Infrastructure Resiliency through a Planned Investment Strategy

    June 19, 2009 at 9:12 pm

    TISP Summer Forum: Enhancing Infrastructure Resiliency through a Planned Investment Strategy

    July 29, 2009

    8:00 a.m. – 3:00 p.m.

    Embassy Suites DC Convetion Center

    900 10th Street NW

    Washington, DC 20011

    Register HERE for this Forum

    On July 29, 2009, at the Embassy Suites DC Convention Center, Washington, DC, The Infrastructure Security Partnership (TISP) hosts its Summer Forum on Enhancing Infrastructure Resilience through Planned Investment Strategies with a focus on the Transportation and Energy CI/KR Sectors. Resilience is more than a buzzword used to describe the strength of community. When considering the subject of infrastructure protection, we ignore many other crucial aspects of securing the nation and its critical infrastructure. Infrastructure resilience addresses the development and implementation of exercised measures and policies to reduce the disaster and devastation impacts of all types of hazards to manageable effects that can be quickly overcome. Investment strategies that take into consideration the reduction of risk, stabilization of the work force, improved efficiencies (such as improvements to the road and rail transportation system that result in faster cargo supply chains), redundancy, business continuity and quick recovery from a catastrophic event will realize significant returns to stakeholders and investors. Infrastructure operations, safety, maintenance, protection and resiliency are so closely intertwined in today’s world that they must all be part of any investment strategy if it is to be cost-effective and long-lasting.

    Facilitating public and private sector discourse regarding investment strategies for infrastructure resilience is essential to the TISP mission to lead collaborative effort that advances the practice and policies of infrastructure security and resiliency. We will bring together decision makers, policy analysts, and experts in transportation and energy infrastructure resilience and planning. This forum is designed to encourage audience participation, with a morning discussion of cross-sector topics and with two afternoon breakout sessions (one for transportation and the other for energy sectors).

    The issues and recommendations identified by the Forum will be documented and distributed via a summary report to of all participating organizations and an article published in the TISP e-Newsletter and shared with infrastructure resilience stakeholders.

    Registration Rates

    TISP Dues-paying Members: $75.00

    Public Agency Rate: $75.00

    TISP Partners (non-paying members): $100.00

    Hotel Location and Directions

    Embassy Suites DC Convention Center

    900 10th Street NW

    Washington, DC 20011

    202-719-1423

    Map and Directions

    Register HERE for this Event.

    For more information about TISP and this Forum, contact Mr. Bill Anderson, 703-549-3800 Ext 170. For assistance in registering for this Forum contact Carie Losinski, SAME Online Registration Specialist, at 703-549-3800, Ext. 154.

    Bernie’s Transportation Communications Newsletter (TCN) – June 19, 2009

    June 19, 2009 at 8:40 pm

    Friday, June 19, 2009 – ISSN 1529-1057


    AVIATION

    1) Aircell Gets FAA Approval for Wi-Fi System

    Link to story in The Denver Post:

    http://www.denverpost.com/headlines/ci_12625367

    Link to news release from Aircell:

    http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/06-18-2009/0005046431&EDATE

    CARTOGRAPHY

    2) Oops! ‘Ferry Crash’ Unstitches Google Maps

    Aerial photo appears to show boats crashing and another one sunk in Sydney.

    Link to story in The Sydney Morning Herald:

    http://www.smh.com.au/technology/technology-news/oops-ferry-crash-unstitches-google-maps-20090618-cl13.html

    ELECTRONIC TOLLING

    3) Ohio Turnpike Still a Hole in Regional Tolling

    Link to AP story:

    http://ydr.inyork.com/ci_12647923

    GPS / NAVIGATION

    4) US Air Force Reviews Reliability of GPS Satellite Models

    Link to story in The Wall Street Journal:

    http://online.wsj.com/article/SB124543128766431947.html

    OTHER

    5) New Jersey Turnpike Wants to Roadblock ‘Exit’ Brew

    Toll road asks brewery to halt marketing of beer.

    Link to story in The Philadelphia Inquirer:

    http://www.philly.com/dailynews/features/20090619_N_J__wants_to_roadblock__Exit__brew.html

    Link to story in TOLLROADSnews:

    http://www.tollroadsnews.com/node/4204

    Link to further information from Flying Fish Brewing Co.: http://www.exitseries.com/

    RAILROADS

    6) Public Rail Crashes Probe Ruled Out in UK

    Link to Press Association story:

    http://www.google.com/hostednews/ukpress/article/ALeqM5jfPPY2c_mkMzD7_ZuqJFy-0OHCow

    SAFETY / SECURITY

    7) FOI: Fear of Information

    Releasing information on airport staff names salaries is a security concern says city of Houston.

    Link to commentary in the Houston Chronicle:

    http://www.chron.com/disp/story.mpl/metropolitan/casey/6487473.html

    Link to story in Texas Watchdog:

    http://www.texaswatchdog.org/2009/06/airportpayroll1/

    TRANSIT

    8) First Amendment Implications for Transit Facilities: Speech, Advertising, and Loitering

    Link to further information from the Transportation Research Board:

    http://www.trb.org/news/blurb_detail.asp?id=10528

    TRAVELER INFORMATION / TRANSPORTATION MANAGEMENT

    9) Second i-Travel Workshop Held

    Link to further information from ERTICO-ITS Europe:

    http://www.ertico.com/en/news/ertico_newsroom/second_i-travel_workshop_held.htm

    VEHICLES

    10) Feds Roll Out Consumer-Friendly Tire Label Rules

    Link to story in the Los Angeles Times:

    http://latimesblogs.latimes.com/uptospeed/2009/06/car-tires.html

    News Releases

    1) New York State Announces Free Statewide 511 Travel Information Phone Service

    2) Number of States Banning Texting While Driving Doubles in ‘09

    Upcoming Events

    TISP Summer Forum: Enhancing Infrastructure Resiliency Through a Planned Investment Strategy – July 29 – Washington, DC

    http://www.tisp.org/index.cfm?cdid=11687&pid=10231

    Friday Bonus

    If you won’t slow down in a work zone, perhaps this will encourage you to take your foot off the gas.
    http://www.howwedrive.com/2009/06/09/the-next-great-idea-in-work-zone-safety-engineering/

    Today in Transportation History

    1934 **75th anniversary** – The Communications Act of 1934 became law. The act created the Federal Communications Commission.

    http://www.fcc.gov/Bureaus/OSEC/library/legislative_histories/47.pdf

    =============================================================================================

    The Transportation Communications Newsletter is published electronically Monday through Friday.

    To subscribe send an e-mail to: TCNL-subscribe@googlegroups.com

    To unsubscribe send an e-mail to: TCNL-unsubscribe@googlegroups.com

    TCN archives: http://groups.yahoo.com/group/transport-communications

    Questions, comments about the TCN? Please write the editor, Bernie Wagenblast ati95berniew@aol.com.

    © 2009 Bernie Wagenblast

    Cash for Clunkers Update – June 19, 2009: Bill clears the Senate; Next-up President’s signature; Europe reports sales boost after scrapping plan

    June 19, 2009 at 3:27 pm

    (Source: Autoblog, Washington Post,  Detroit Free Press, AFP via Google)

    Image Courtesy: Jalopnik

    Clears Senate

    After narrowly surviving an attempt by Sen. Judd Gregg, R-N.H. to strip it from a war-spending bill, the Cash for Clunkers program passed the Senate yesterday evening. Well, the $106 billion war-spending bill passed the Senate on a 91-5 vote, but the $1 billion scrapping program earlier survived Sen. Gregg’s attempt to have it removed and thus passed, as well. Now the bill makes its way to President Obama, who is expected to sign the bill into law, after which the U.S. Transportation Department reportedly has one month to figure out how the Cash for Clunkers program will be run. Since Congress reduced funding for the program from $4 billion to just $1 billion, it’s expected that the money will run out long before the program is scheduled to end on November 1.

    “We are gratified that the Congress delivered on this administration priority, and President Obama looks forward to signing it into law,” according to an administration statement.

    Details, Details, Details,

    Vehicles purchased after July 1 will be eligible for the refund vouchers worth as much as $4,500 to turn in gas guzzlers and buy new cars that are more fuel efficient.

    The agency in charge of administering the program, the National Highway Traffic Safety Administration, will work out all the details within 30 days of enactment, according to Rae Tyson, spokesman for NHTSA.

    Congress predicts this will result in the sale of about 250,000 new vehicles. The funding is good only until Nov. 1 and could run out before that. In that case, the voucher pro gram — unless Congress ap propriates more — would end.

    Consumers would be able to start using the vouchers as soon as the National Highway Traffic Safety Administration finalizes the rules — a process that must conclude within 30 days of the president’s approval.

    Under the program, trade-in vehicles, 1984 models or newer, must have average fuel economy of no more than 18 miles per gallon. And the new car or truck must get better gas mileage than the one that was scrapped.

    The payoff grows depending on the difference in the fuel efficiencies of the old and new cars. For instance, a new car getting at least 4 more miles per gallon than the old car will be eligible for a $3,500 voucher. A new car getting at least 10 more miles per gallon would get a $4,500 voucher.

    To guarantee vehicles are actually roadworthy — and not just sitting on cinder blocks — trade-ins must be registered and insured to the same owner for at least a year.

    Kudos & Pats in the Backs

    Image Courtesy: Apture

    Cash for clunkers proponents in Congress said the subsidies will spur sales.”The simple fact is that we need to get Americans into car showrooms and this is the bill that will do it,” said Rep. Candice Miller, R-Mich., in a statement.

    Sen. Debbie Stabenow, D-Mich., said the program will boost jobs in auto states. “This program will provide an economic stimulus at a time when hardworking families need it most,” Stabenow said in a statement.

    GM said it had decided to keep 60 of the more than 1,000 dealers with whom it had sought to terminate agreements. The reversals were made after the automaker corrected financial information that was used to evaluate which stores to keep.  Dealers applauded the Senate’s action yesterday, and some got additional good news.  John McEleney, chairman of the National Automobile Dealers Association, hailed the measure, saying it “will boost consumer confidence, get the economy going again and reduce our dependence on foreign oil. Congress is giving consumers a strong incentive to replace their older vehicles with new, more fuel efficient cars and trucks.”

    Transportation Secretary Ray LaHood said “The program is an important step forward for America. “It provides incentives for consumers to buy new, more fuel-efficient cars and trucks, providing a boost to the auto industry and protecting jobs, while limiting fuel use and greenhouse gas emissions.”

    The legislation comes with number-one US automaker General Motors in bankruptcy and Chrysler emerging from court protection under a government-backed alliance with Italy’s Fiat in the face of plunging auto sales.

    Cash for Clunkers Update from Europe (Channel 4 via Autobloggreen)

    Several other countries, such as China and Italy, have offered similar trade-in vouchers. And lawmakers point to the success of Germany’s program as indication that vouchers can turn dismal auto sales around.  At the end of the program’s first month, sales in Germany were up 21 percent from a year before. During the same period, U.S. sales slumped 41 percent. Now,  a leading provider of automotive data and intelligence says the European motor industry is showing signs of recovery following the introduction of scrappage schemes on the continent.  According to a new study by Jato Dynamics, the European automotive market may be rebounding ever so slightly from its alarming lows of early 2009.

    Though new car purchases are down by just over 13 percent year-on-year, there was actually a mild 2.4 percent improvement in May over April. The German market is now 39.7% up on May 2008 – a 20.3% improvement over last month’s figures. France, meanwhile, is up 11.8% over the figures for April.  “If Germany provides a template for the other markets where scrappage schemes have been introduced, we may be at the very beginning of a period of recovery in Europe. It’s far too early to know what the sustained effects of the incentives will be, but at a time when the industry needs to see some rays of hope, it’s encouraging to witness some improvement ” says David Di Girolamo, Head of Jato Consult. Interestingly, small, fuel efficient hatchbacks are performing better than the rest of the market, which is thought to be due to the various scrapping schemes in Europe.

    The US market has steadied somewhat from lows earlier this year but the sales pace in May remained 33.7 percent below that of one year ago.  Let’s hope the American consumers will follow their European counterparts in boosting the vehicle market> Eeven if it is only a liitle, the market can use any push to build its recovery.

    Rubber Meets the Road (& Gas Tank, Clouds, etc ) – USDOT Proposes New, Consumer-friendly Environmental & Fuel Efficiency Rating Labels for Tires

    June 19, 2009 at 2:05 pm
    (Source:  NHTSA & USA Today)

    Image Courtesy: NHTSA, USDOT

    The U.S. Department of Transportation today proposed a new, consumer-friendly replacement tire label which would include, for the first time, information about the tire’s impact on fuel economy and CO2 emission reductions. Tires with lower rolling resistance – and proper inflation pressure – can contribute to improved fuel economy (Click here to read the proposal.)

    In addition to the new fuel efficiency ratings, the proposal by the National Highway Traffic Safety Administration (NHTSA) also would provide consumers with two other key pieces of tire performance information – wet weather traction and tread wear. All three ratings would be prominently displayed on a removable label attached to the replacement tire at the point of sale.  NHTSA is required by the Energy Independence and Security Act of 2007 to issue a final rule by December 2009.

    The new, three-tiered ratings also will appear on safercar.gov to help consumers in compare ratings as they shop for new tires.

    Making sure consumers know which tires are the best gas savers could take up to a 2% whack out of the 135 billion gallons of fuel the nation consumes every year, estimates the National Highway Traffic Safety Administration (NHTSA).

    The removable label would be affixed to the tire, but since many consumers never see replacement tires that go on their cars, it would be available online, as well.  NHTSA already has lots of tire information on its SaferCar.gov website.

    One of the main trade organizations for the tire industry, the Rubber Manufacturers Association, hasn’t taken a stand yet on the proposed federal rule, but supports the idea in concept.

    You can see from the sample that the new label would include–for the first time–information about the tire’s impact on fuel economy and CO2 emission reductions, wet weather traction and tread wear.

    NHTSA’s proposal would let consumers look at a single label and compare a tire’s overall performance as it relates to fuel economy, safety and durability, which should be pretty useful for consumers looking to buy a tire.

    USAToday reports that the simplified labels have the blessings of an environmental group that has followed the effort. “Armed with efficiency ratings, consumers can choose replacement tires that can cut the gasoline consumption of their current car, minivan, SUV or pickup and save money with fewer trips to the pump,” said Luke Tonachel, vehicle analyst for the Natural Resources Defense Council in a blog note.

    Since gas topped $4 a gallon last summer, more effort has gone into developing and marketing gas-saving tires. Goodyear says its new Assurance Fuel Max has 27% less rolling resistance than conventional tires. Michelin says its Energy Saver A/S is 8% more fuel efficient than other tires in its class.

    While praising NHTSA for its efforts to push the new rating system, the Transportation Secretary Ray LaHood said in his blog “…proposal takes the guesswork out of buying the best tires for your vehicle.  Our proposal would let consumers look at a single label and compare a tire’s overall performance as it relates to fuel economy, safety and durability.”  He also noted that “while we’re talking tires, please remember that the best tires in the world will not keep drivers and passengers safe if they are underinflated or if vehicles are overloaded.”

    For those interested in reading the proposal, click here.

    Flying coach, just like everyone else – Judge Grants GM Approval to Cancel Jet Leases

    June 19, 2009 at 11:50 am

    (Source: Washington Post & Reuters)

    General Motors executives will now fly commercial.

    Image Courtesy: Autoblog

    In a move that reflects the leaner company GM is seeking to become, the automaker on Thursday sought approval from a federal bankruptcy judge to terminate leases for all seven of its corporate aircraft, plus a hangar at a Detroit airport. Facing no objections, Judge Robert Gerber granted the request during a hearing in a Lower Manhattan courtroom that lasted less than 10 minutes.

    “The new GM will have no jets — we’re all flying Delta,” GM spokesman Tom Wilkinson said in an interview.

    The planes are leased from a division of General Electric and include five mid-range Gulfstream G350 business jets and two ultra-long Gulfstream GV jets, according to court documents.

    Then-GM chief executive G. Richard Wagoner Jr. had been assailed by lawmakers at a hearing in November when he and other auto executives flew to Washington on private jets to ask for government funds. In March, Wagoner was pushed out by the Obama administration, which has pumped billions of dollars into GM and Chrysler.

    In a recent court filing, GM said it was exercising “sound business judgment” in seeking to end the contracts. “The leases are not necessary or valuable to [GM’s] business activities,” the automaker said in the filing.

    Corporate America has long argued that using private jets is a safety precaution and a way to maximize busy executives’ time by allowing them to avoid delays at crowded airports.

    Chrysler also recently terminated its two aircraft leases. A spokesman for Ford, the only one of the Big Three Detroit automakers that hasn’t taken taxpayer funds, said the company is seeking to sell its five jets, which have been grounded since late last year. Ford’s chairman and chief executive have been chartering flights on an as-needed basis, the company said.

    Click here to read the entire article.

    Riches to Rags-Part -II: India’s Kingfisher Airlines Is a Cautionary Tale

    June 19, 2009 at 11:25 am

    Kingfisher Airlines of India promised passengers the royal treatment — flight attendants so comely they were called “flying models,” full meals even on short flights and curbside valets to carry their bags.

    Image Courtesy: Apture - Kingfisher's Vijay Mallya

    But how the mighty have fallen.
    Short of cash and unable to pay its bills, the company has had to take on debt from India’s government-owned banks, pledge assets in exchange for loan guarantees, postpone delivery of new planes and search for a foreign investor.   Most symbolic, perhaps, instead of starting nonstop flights from India to California — as envisioned by the company’s flamboyant founder, Vijay Mallya — the airline last added a route from Calcutta to Dhaka, the capital city of Bangladesh.

    Known as the “King of Good Times,” Mr. Mallya pursues a lavish lifestyle that includes a collection of hundreds of sports cars and a villa on the French Riviera. He built Kingfisher as a “premium” airline and, when passenger numbers were growing, placed big orders for planes, including five of the A380 superjumbo jets from Airbus, even though Kingfisher had never turned a profit.

    Kingfisher lost 10.5 billion rupees, or $219 million, in the nine months that ended in December, the most recent figures available. India’s other large private airline, Jet Airways, reported a slight profit for the first quarter of this year, in part because of one-time tax credits. Kingfisher still owes $100 million to oil companies for jet fuel it bought in 2008, Mr. Mallya said. Those payments will be made by November.

    Sorry State of India’s Aviation Business

    Airlines around the world are suffering as businesses and individuals cut back on travel, but in India, by some measures, they are suffering more. And analysts say that in the months to come, Kingfisher, one of India’s top domestic carriers and one of the country’s most recognized brands, may be in for more pain than any other airline here.

    Kingfisher’s troubles present a cautionary tale for investors and suppliers eager to do business in one of the few major economies still experiencing significant growth. Even as incomes and consumption continue to rise in India, success is not guaranteed — nor is a smooth ride.

    Of the $9 billion that the International Air Transport Association estimates the global airline industry will lose in 2009, nearly a quarter will be lost by Indian airlines, which fly just 2 percent of the world’s passengers.

    For India’s private airlines, “the next six to nine months are about survival,” said Kapil Arora, a partner with Ernst & Young’s aviation practice. To make it, they will have to cut costs relentlessly in marketing, technology and payroll, he said.

    Even that may not be enough. After resisting for years, the Indian government is considering letting foreign airlines take a 25 percent stake in Indian carriers. But the rest of the world’s airlines are short of cash as well. “It’s going to take active government involvement” to keep India’s airlines in business, Mr. Arora said.

    Image Courtesy: Extra Mirchi - A Kingfisher Promise

    In an e-mail interview, Mr. Mallya brushed off suggestions that the company was struggling for survival. It will turn a profit in the next fiscal year, he said, and a $500 million loan, recently arranged by the State Bank of India and sold to an alliance of banks, is sufficient to keep the company going this year.

    If that’s not enough, Mallya wants to proceed with his fleet expansion plans. Miranda Mills, vice president at Airbus, said the manufacturer had been in regular conversation with its Indian customers and was not worried about any of Kingfisher’s orders, including those for the A380.  “We work a long-term game,” Ms. Mills said. In the airline business, companies do not place an “order for the next year or two and then change your business model totally,” she said.

    Unfortunately, that is just what the Indian government is encouraging airlines to do. “Individual customers have been thoroughly pampered all these years,” Praful Patel, the Indian civil aviation minister, said. Airlines need to redefine their business model, he said, and emulate no-frills carriers that are close to breaking even, like IndiGo and SpiceJet.

    Indian airlines grew too much, too quickly during the recent boom, analysts say. At its zenith, the industry was adding six planes a month, when there was demand for only half that number, according to the New Delhi office of the Center for Asia Pacific Aviation, a consulting and research firm. To gain market share and attract customers who may never have flown before, airlines were pricing tickets way below cost.

    Adding to their problems, Jet and Kingfisher made expensive acquisitions in 2007 — Jet Airways bought Air Sahara and Kingfisher Airlines bought Air Deccan. Analysts say that the airlines paid too much for the acquisitions and have taken too long to absorb the operations they acquired.

    Next, surging fuel prices forced up ticket prices just as the global slowdown cut business and leisure travel. To make things worse, Indian airlines face much higher fixed costs than carriers in many other countries, like fuel taxes that can be five times the global average.

    In India, “the big boys today have huge debts, massive fleets, are confronted with a marked slowdown in domestic and on the international side,” said Kapil Kaul, chief executive for the Center for Asia Pacific Aviation in India. And, he said, “there are virtually no funds available.”

    While Mr. Patel, the civil aviation minister, would not comment on individual airlines, he did say that the government would not block further consolidation or prevent a carrier from closing. Many airlines should have been better prepared, he added. “Some of these guys in the best days didn’t go big time to the markets and raise money,” he said.

    But the latest Indian Government statistics show the country’s domestic passenger market shrunk 11% in May. The civil aviation minstry statement says India’s airlines carried 3.9 million passengers, up from 3.3 million passengers carried in April.  Kingfisher retained the number one position it assumed in April, carrying 1 million passengers for 26% marketshare. Characteristically, Mr. Mallya is undeterred. Kingfisher Airlines “enjoys business from both” low-fare and premium passengers, he said, “which is one of the reasons why Kingfisher Airlines flew more than a million passengers in May 2009.”  But recent attritition of the top management team indicate there maybe some cause for concern.  Ramki Sundaram, executive vice-president at Kingfisher Airlines Ltd and former chief executive officer of Deccan Aviation Ltd, has resigned. Sundaram has been an investment banker in the aviation industry for at least a decade. He was instrumental in structuring aircraft sales and lease-back deals for Deccan Aviation, which ran Air Deccan, the country’s first low-fare airline, till it was acquired by and later merged with Kingfisher Airlines. Kingfisher Airlines’ vice-president, operations, D.D. Gandhi, one of the carrier’s first employees, left the company earlier in June.  Gandhi had joined Kingfisher in 2005 after a year with Deccan Aviation to head the airline’s domestic and international expansion.

    To stem the tide, last week, Kingfisher hiked its fuel surcharge on tickets by 400 rupees across both long and short haul domestic routes. The company is reportedly looking to rollover around Rs 800 crore of its short term debt. It is also learnt to be finalizing the paper work for borrowing an additional Rs 1,500 crore from Indian public sector banks.  Kingfisher has also started exploring other ways to increase the traffic on its network. As of June 1, Kingfisher joined the Global Explorer, which features all members of the oneworld® alliance and some selected other airlines, which offers round-the-world fares. Members of oneworld alliance and some other non-member airlines which are part of the Global Explorer programme will now be able to offer fares for the Indian domestic network. Members of oneworld alliance serve five points in India but the addition of Kingfisher Airlines’ domestic network from today expands that to a further 62 getaways across the country. This is the first time an Indian domestic network is being offered for round-the-world fare programme.

    (Source: New York Times, LiveMint.com, TravelbizMonitor)

    Riches to Rags: Once powerful Porsche, now left struggling for power – Sales Fall 15%; VW dream turns into a nightmare; Arabs infuse money and get controlling stakes

    June 19, 2009 at 10:15 am

    A power struggle between Volkswagen chairman Ferdinand Piëch and Porsche’s management continued to intensify on Friday, just as the company announced that sales had crashed 15 percent.

    Image Courtesy: Apture

    Sales Tsunami

    Friday’s numbers are creating a Tsunami of sorts at the German automaker. Bloomberg reports that Porsche SE’s sales for the period through April 30 declined to 4.64 billion euros ($6.46 billion) from 5.46 billion euros a year earlier, Stuttgart, Germany-based Porsche said today in a statement. The company reiterated that revenue and earnings will fall this fiscal year, based on “extremely poor business” in the first three months of 2009. Porsche’s nine-month vehicle deliveries fell 28 percent to 53,635 cars and SUVs, as Cayenne sales dropped 25 percent to 24,689 units. Deliveries of the 911 fell 18 percent to 20,254 cars. Sales of the less-costly Boxster model, including the Cayman version, fell 47 percent to 8,692 cars.

    Changing Partners

    The drop in sales will reduce Porsche’s options for paying back more than 9 billion euros of debt stemming from its purchase of a majority stake in Volkswagen AG, Europe’s biggest carmaker.   The sports car maker has entered exclusive talks with the Qatar Investment Authority, the sovereign wealth fund of the energy-rich Persian Gulf emirate. It could acquire as much as 25 percent of Porsche’s voting shares, which have long kept the Porsche family firmly in charge. The Qataris, who would get a seat on Porsche’s supervisory board, may also purchase the options Porsche has on VW shares.  Qatar could bring as much as €5 billion into the company, analysts estimate, helping to relieve the €9 billion debt load that Porsche incurred to acquire 50.76 percent of Volkswagen.

    To tide it over, Porsche has applied for a loan of €1.75 billion from a fund the German government set up in March to help companies through the financial crisis. The request is being reviewed in Berlin, with a response expected in the coming days or weeks.

    Dream Turned NightMare

    Interestingly, the New York Times has a wonderful article explaining how Porsche’s top enchilada reacted to this reversal of fortunes.  When Wolfgang Porsche learned that his family’s sports-car maker, once bent on taking over Volkswagen, now had to beg its giant rival for money, he looked as if he were going to faint.  “He went absolutely white,” said one person briefed on that secret meeting, which involved executives from both companies. “It was as though he’d heard someone died.” A day later, on March 23, fax machines around Germany spit out a piece of paper for Volkswagen’s board members to sign: an emergency loan of €700 million, or $977 million, for Porsche from its former prey — Volkswagen.

    Mr. Porsche is now on the verge of accepting Porsche’s integration into Volkswagen, rather than the hoped-for David-versus-Goliath takeover. On top of that embarrassment, Porsche also is seeking outside investors and a government bailout.

    “This is becoming a reverse takeover on a financial level,” said Arndt Ellinghorst, head of automotive research at Credit Suisse in London. “Porsche has debt and VW has the luxury of cash.”

    The company has responded to the sales drop by periodically suspending production. Porsche will halt work for two days between now and the end of July for a total cutback of 21 days for the fiscal year, Albrecht Bamler, a spokesman, said today.

    Controlled by the Porsche and Piech families, the sports- car maker dropped its Volkswagen takeover plans on May 6, saying it will seek talks on creating an “integrated” company that would put Porsche alongside Volkswagen’s nine brands, which also include luxury unit Audi and mass-market manufacturer Skoda. Porsche said today that “there is a consensus” among family members to continue with creating an integrated group.

    Arrival of Mr. McNasty & Blame Game

    This change in fortunes has brewed a nastiness at the top levels of Porsche’s management that’s unseen in the history of the carmarker.  Controlled by the Porsche and Piech families, the sports- car maker dropped its Volkswagen takeover plans on May 6, saying it will seek talks on creating an “integrated” company that would put Porsche alongside Volkswagen’s nine brands, which also include luxury unit Audi and mass-market manufacturer Skoda. Porsche said today that “there is a consensus” among family members to continue with creating an integrated group.

    Porsche CEO Wendelin Wiedeking and Piëch have been exchanging increasingly nasty words in recent days, the daily Süddeutsche Zeitung reported Friday. Piëch blames Wiedeking for increasing the company’s mountain of debt, now around €9 billion, in a failed attempt to take over Volkswagen.

    Wiedeking, in turn, has said Piëch has harmed the company with his public criticisms at a sensitive time when the two companies are discussing a merger. Piëch is the grandson of Porsche founder Ferdinand Porsche and left a career at the company to work for Volkswagen in the 1990s.

    In a letter to Piëch dated May 13, cited by the newspaper, Wiedeking warned Piëch that he would be help “personally responsible” if Porsche were harmed by Piëch’s verbal assaults. In the rarified world of German boardrooms, such strong language is almost unheard of and reflects the complex pressures brought on by rivalries between the Piëch and Porsche clans, collapsing car sales, industry consolidation and a credit crunch brought on by the financial crisis.

    If this is not enough drama wait till you see what happens in the months ahead.  Looking ahead, the company declined to give a precise forecast but said sales were likely to fall below the level in its previous fiscal year.

    (Source: The Local, New York Times, Bloomberg)

    Google Transit delivers “Dump the Pump” day gift for urbanites – Now you can use voice search on Trip Planner

    June 18, 2009 at 10:46 pm

    Image Courtesy: joannapenabickley.typepad.com

    Personally, I am a big fan of Google Transit and Google’s approach to making transit a bit more easy for the general public. Today (June 18) being the “Dump the Pump Day” sponsored by the American Public Transit Association, the good folks at Google Transit published a post on their LatLong blog outlining how Google can help you find the transit options in the cities you live.

    Here is an excerpt from the blog post by Jessica Wei, Strategic Partner Development Manager, Google Transit: Now, you may wonder how you can plan a transit trip easily if you’re not familiar with your local agency. The answer is – go to Google Maps. So far more than 100 agencies in the United States have made their data available in Google Maps through Google Transit Partner Program. In addition, Los Angeles Metro, City of Edmonton, Houston Metro, and Calgary Transit have released their GTFS data feed to the public so that developers can create innovative transit applications to further promote the awareness of public transportation.Now go to Google Maps on your computer or your cell phone, plan a transit trip, and go catch a train or bus. I bet your won’t miss the congested highway or increasing gas price!”

    The last statement in the blog post caught my curiosity leaping and promoted a search on the web (of course using Google)to find out the mobile applications.  Surprise, Surprise!  I found out that this past weekend Google introduced a new version of its glossyMaps application for Android phones.

    Version 3.1.0 brings with it several new features, including voice search to go with its text search field and transit and walking directions to go with step-by-step driving directions. “Whether you’re searching for an address, a business, or nearby windsurfing sports, just speak your query and Google Maps will find it,” Google wrote on its mobile blog. “After your search, you’ll see a map of places. To help you decide where to go, we’ve improved our business listings to include content such as store hours, prices, ratings, and reviews.”  Urbanites must be thrilled with this new addition!

    Image Courtesy: Google Mobile Blog

    The new features were tested by the folks at CNET and they were clearly impressed – an outcome that we have come to expect out of most Google products these days.

    Here is what they had to say about the Trip Planner tool:  The trip planner in particular worked extremely well for San Francisco. As with the online version, Google’s Transit works in 250 cities. Indeed, Google Maps quickly and accurately planned and timed my commute, providing options for other routes in the near past and future. To get directions with public transit, tap “Directions'” from the menu, select the middle icon, of a bus, and enter the end point, which can be an address or a business name.

    You’re also able to set a specific departure time or arrival time and day. For city-dwellers, accurate walking and transportation directions are a necessity.   Rolled into the release is an experimental feature. Updates, which is connected to Google Latitude, lets you actively change your Latitude status for friends to see–so long as they’re also using the latest version of Maps.

    The erasure of Street View as its own map mode is another change you’ll see. Instead, it has been integrated into any search result where the view is applicable. Pressing a point on the map will also bring up a Street View thumbnail if there’s an available image.”

    With the growing popularity of transit,  spread of Google Transit in more cities around the globe, such cool new features would make transit a compelling option.  It is a good time to recall that quote by New York Governor David Patterson “Google Maps for Transit is a truly innovative marriage of information and infrastructure. It is a perfect example of how the public and private sectors can partner together to benefit us all — and it didn’t cost New York taxpayers a penny. I applaud my colleagues at the MTA and Port Authority for making this a priority, and our friends at Google for continuing to make the world an easier place to navigate.”

    We gotta admit that it definitely got a lot more easier to navigate as of this past weekend!

    (Source: Google, CNET)

    Bernie’s Transportation Communications Newsletter (TCN) – June 18, 2009

    June 18, 2009 at 5:06 pm

    Thursday, June 18, 2009 – ISSN 1529-1057


    Registration Now Open for IBTTA’s 77th Annual Meeting and Exhibition: The Transformation of Transportation

    IBTTA’s 77th Annual Meeting & Exhibition, September 13-16, 2009, in Chicago, Illinois is the most significant gathering of toll industry professionals and business partners in the world. Delegates from 25 countries on six continents will meet in Chicago to examine best practices and critical innovations in toll industry finance, marketing, technology and innovation, customer service, sustainability, operations, and related issues. Register by August 14 and receive a $100 discount off your registration fee. This meeting is hosted by the Illinois Tollway and will be held at the Hyatt Regency. For more information on registration, hotel reservations, exhibiting or sponsorship, visit IBTTA’s website at www.ibtta.orgRegister online today!

    AVIATION

    1) Regulators Zero In on Risks of Airbus Sensors

    Link to story in The New York Times:

    http://www.nytimes.com/2009/06/18/world/europe/18iht-plane.html?partner=rss&emc=rss&pagewanted=all

    2) Eye-in-Sky Satellite Storm Alert May Avert Future Air Disasters

    Link to Bloomberg News story:

    http://www.bloomberg.com/apps/news?pid=20601109&sid=a.s6Gdc8Ww8s

    3) Eyes in the Sky Make Aircraft More Visible

    New Zealand surveillance sites will improve safety.

    Link to story in the Mountain Scene:

    http://www.scene.co.nz/24157a1.page

    CAMERAS

    4) Arizona Senate Panel Vote Would Add Points for Photo Radar Tickets, Notify Insurers

    Link to Capitol Media Services story:

    http://www.azstarnet.com/metro/297547

    OTHER

    5) June Issue of the National Weather Service’s The Front Online

    Link to newsletter:

    http://www.weather.gov/os/aviation/front/09jun-front.pdf

    ROADWAYS

    6) Georgia Told Better Exit Signs Needed

    Link to story in The Atlanta Journal-Constitution:

    http://www.ajc.com/services/content/printedition/2008/08/21/ntsb.html

    7) ‘Share the Road’ Sign Design Hits Bump on the Regulatory Road

    Link to story in The Wenatchee World:

    http://wenatcheeworld.com/article/20090618/NEWS04/706189907/-1/NEWS90?Sign-design-hits-bump-on-the-regulatory-road

    SAFETY / SECURITY

    8) Canada Amends ‘Dangerous Goods’ Act to Prevent Haz-Mat Accidents

    Amendment requires transporters to develop and maintain pre-approved emergency response assistance plans and that ‘dangerous goods’ be tracked.

    Link to story in Progressive Railroading:

    http://www.progressiverailroading.com/news/article.asp?id=20671

    9) First Implementations of New Activate It Mobile Alerting System Next Month

    Link to story in Traffic Technology International:

    http://www.traffictechnologytoday.com/news.php?NewsID=13166

    TRANSIT

    10) Miami-Dade Train Tracker Wins Award

    Link to story in Metro Magazine:

    http://www.metro-magazine.com/News/Story/2009/06/Miami-Dade-Transit-s-Train-Tracker-wins-award.aspx

    11) In a Month, Chandigarh Buses to be GPS-Ready

    Link to story in the Indian Express:

    http://www.indianexpress.com/news/In-a-month–buses-to-be-GPS-ready/478622

    12) National Campaign Urges Drivers to Give Public Transportation a Chance

    Link to story in The Indianapolis Star:

    http://www.indystar.com/article/20090618/LOCAL18/906180417/National+campaign+urges+drivers+to+give+public+transportation+a+chance

    TRAVELER INFORMATION / TRANSPORTATION MANAGEMENT

    13) Europe Split Over Best Way Forward for Traffic Systems

    Countries, including the UK, are resisting efforts by the European Commission to impose an EU-wide framework for intelligent traffic systems.

    Link to story in Computing:

    http://www.computing.co.uk/computing/analysis/2244382/europe-split-best-way-forward-4723503

    14) Ontario Ministry of Transportation Mobile Radio Network a Success

    Link to story in Road Talk:

    http://www.mto.gov.on.ca/english/transtek/roadtalk/rt15-2/#a6

    VEHICLES

    15) UPS to Allow Hard-of-Hearing Drivers

    Link to story in the San Francisco Chronicle:

    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/06/17/BA5A188DRO.DTL

    News Releases

    1) DART Features Employees in Online Rail Construction Promotion

    2) TomTom Selects Inrix as Strategic Partner for Traffic and Fuel Prices in North America

    3) Frost & Sullivan Presents European Automotive Safety Systems Product Innovation of the Year Award to Navteq

    Job Postings

    –  Operations Research Analyst, GS-1515-13 EG – Research and Innovative Technology Administration – Cambridge, Massachusetts

    http://jobview.usajobs.gov/getjob.aspx?jobid=81453292&rc=5&TabNum=1

    –  Operations Research Analyst, GS-1515-12 EG – Research and Innovative Technology Administration – Cambridge, Massachusetts

    http://jobview.usajobs.gov/getjob.aspx?jobid=81453244

    Upcoming Events

    MetaPlaces ’09 – September 22-23 – San Jose, California

    http://www.thewherebusiness.com/metaplaces/index.shtml

    Today in Transportation History

    1934 **75th anniversary** – Design began of the Boeing Model 299 which eventually became the B-17 Flying Fortress.

    http://www.1000aircraftphotos.com/Contributions/KleinBernhard/7102.htm

    =============================================================================================

    The Transportation Communications Newsletter is published electronically Monday through Friday.

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    TCN archives: http://groups.yahoo.com/group/transport-communications

    Questions, comments about the TCN?  Please write the editor, Bernie Wagenblast at i95berniew@aol.com.