Ministers from seven African nations and senior civil aviation and airport company officials recently gathered in Atlanta for the U.S.-Sub-Saharan Africa Partners in Aviation Summit, sponsored by U.S. Trade and Development Agency (USTDA).

Meeting with USTDA, U.S. Department of Transportation (USDOT), the Federal Aviation Administration (FAA), and the U.S. business community, participants strengthened strategic and commercial relationships that support aviation infrastructure development, project financing, and air traffic safety and security.

“A healthy aviation sector is good for economic development,” said James A. Wilderotter, USTDA’s general counsel. “Without exaggeration, aviation is a catalyst for growth and prosperity in Africa and around the world. Although the benefits of aviation transcend national boundaries, the strength of the sector depends in large part on decisions that are made on the national level.”

Citing examples of projects in Africa where efforts are underway to improve aviation safety, Wilderotter said that USTDA has collaborated closely with local partners to develop public-private partnerships that are working toward modernizing and upgrading airport infrastructure.

“The conference profiled 90 upcoming aviation projects in 25 countries in Africa,” Wilderotter said. “Holding this event in Atlanta gives U.S. companies the opportunity to demonstrate the value of their products and services to potential clients in emerging markets across Africa.”

In the summit meeting, ministers from Burkina Faso, Ghana, Kenya, Mali, Namibia, Tanzania, and Uganda discussed strategies for a safe and secure aviation infrastructure development and how it can help attract investment in industries that generate local employment opportunities, raise incomes, and help elevate people out of poverty.

A plenary session, hosted by USTDA, provided the venue for the signing of an Open Skies Agreement between the United States and the Republic of Uganda. The agreement was signed by USDOT Assistant Secretary for Aviation and International Affairs, Susan Kurland; and Ugandan Minister of Works, Housing, and Communications, H.E. John Nasasira. Open Skies Agreements have been shown to bring substantial economic benefits to shippers, travelers, and communities in the United States and abroad.

During a September 10 hearing of the Committee on Transportation and Infrastructure (the Committee), testimony regarding the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) oversight and management of hazardous materials safety in the United States drew concerns from legislators. As part of the U.S. Department of Transportation (DOT), PHMSA regulates the transport of explosives, toxic chemicals, and fireworks, among others hazardous materials.

During his opening statements, Committee Chairman James Oberstar voiced criticism of current PHMSA procedures and processes regarding the transport of hazardous materials in the United States, calling them “completely unacceptable.”

He continued, saying that an investigation conducted by the Committee staff, and also by the DOT Inspector General Calvin Scovel III, revealed “a shocking number of failures by PHMSA to follow federal law in hazmat regulation, as well as outright neglect in regulating the transport of hazmat.”

Corrine Brown, chairwoman of the Subcommittee on Railroads, Pipelines, and Hazardous Materials, offered damaging statistics regarding PHMSA’s track record, stating, “Each day, nearly 1.2 million shipments of hazardous materials are moved by all modes of transportation. Over the last decade, there have been over 170,000 incidents involving the transportation of hazardous materials, resulting in 134 fatalities, 2,783 injuries, and more than $631 million in property damage. More disturbing, PHMSA has only 35 inspectors to cover over 300,000 hazmat-related entities.”

In his testimony, Inspector General Scovel also criticized PHMSA, saying, “Regulating and monitoring the movement of hazardous materials is a critical part of ensuring the safety of the nation’s transportation system, and it is PHMSA’s role to properly assess all risks before allowing applicants to participate in commerce under special permits and approvals.”

A summary (PDF) of the Committee’s concerns with current PHMSA operations includes the following:

• The agency has granted 12 blanket waivers to trade associations for use by their members, which total more than 5,000 companies, without any evaluation of their fitness for waivers.
• PHMSA often fails to advise other government agencies of its decisions to waive regulations. In particular, PHMSA officials appear to go out of their way to avoid informing the Federal Aviation Administration of waivers involving air cargo.
• The agency issues special emergency waivers of regulations for shippers without any “meaningful justification” for the expedited action.
•  PHMSA’s failure to promptly address safety issues associated with special permits to transport bulk explosives and lithium batteries.

Of the non-emergency special permits studied in the investigation, 65% were either incomplete, lacking evidence showing the applicant’s safety record, or nonexistent, according to report. Furthermore, of the 16 companies that held the majority of the special permits studied, none fully complied with the terms and conditions of the permits.

Deputy Transportation Secretary John Porcari told the committee that he and Secretary Ray LaHood, who took over the department in February, have begun taking steps to correct the problems identified by investigators.

Pocari said the department has begun conducting a comprehensive review of permitting policies and procedures and will make the necessary revisions. It is also clarifying agency policy to ensure trade associations do not hold special permits, and it is overhauling the data and information technology systems in place to enhance productivity and accountability.

The oversight hearing was held as the committee prepares legislation to reauthorize the hazardous materials safety program, which expired last September. That legislation is expected to be included as part of the Surface Transportation Authorization Act (PDF), which was released in draft form in June.

The Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation (DOT), has announced a public meeting to solicit comments on agenda items and potential rulemaking action regarding the use and applicability of international standards that will be discussed at the upcoming 35th Session of the United Nations Sub-Committee of Experts on the Transport of Dangerous Goods (UNSCOE TDG) in Geneva, Switzerland.

The public meeting is scheduled for Wednesday, June 17, 2009, from 9:30 a.m. to 12:00 p.m., at DOT Headquarters, West Building, Oklahoma City Conference Room, 1200 New Jersey Ave., SE, Washington D.C. 20590. Conference call-in and “live meeting” capability will be provided for this meeting. Specific access information will be posted online when available. For more details, see the notice (PDF) published in the Federal Register.

For further information, contact: Duane Pfund, Director, Office of International Standards, or Shane Kelley, International Transportation Specialist, Office of Hazardous Materials Safety, Department of Transportation at (202) 366-0656.

On March 30, the U.S. Department of Transportation’s (DOT) Secretary Ray LaHood joined China’s Minister of Transport Li Shenglin in signing an agreement to cooperate on the safe transportation of hazardous materials. The signing took place at the U.S. Department of Transportation.

Secretary LaHood said that both nations’ industries — including manufacturing, agriculture, and medical research — need regular access to certain types of dangerous materials to conduct business.

“Chinese businesses ship billions of dollars worth of trade goods around the world each year, including to the United States,” he said. “We are eager to work together to make sure these items are transported safely. And I look forward to participating in this important mission.”

The U.S.-China Cooperative Project Arrangement on the Safe Transport of Dangerous Goods is intended to enable the countries to:

• Develop and strengthen avenues of communication concerning the safe transport of dangerous goods;
• Exchange and cooperate in the development of technical information to support regulatory development;
• Improve harmonization and increase safety by implementing international regulations developed by international forums;
• Cooperate on enforcement and investigative actions to improve dangerous goods transport safety, to include exchange of incident and violation data; and
• Organize training activities to strengthen the capabilities of managerial and technical personnel.

Secretary LaHood noted that the agreement is a step forward on improving transportation’s role in fostering a healthy climate for commerce and economic growth, while creating good jobs for both U.S. and Chinese citizens.

A joint transportation forum was held in Beijing last December to address transportation issues, including safety. The next such forum will be held at the end of this year in Washington, D.C.

On March 31, the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation reported that surface transportation between the United States and its NAFTA partners Canada and Mexico was 27.2% lower in January 2009 than in January 2008, dropping to $47.5 billion, the biggest year-to-year percentage decline on record. The $47.5 billion in U.S.-NAFTA trade in January 2009 was the lowest monthly amount since January 2004.

The value of U.S. surface transportation trade with Canada and Mexico fell 10.3% in January from December. Surface transportation consists largely of freight movements by truck, rail and pipeline. Approximately 88% of U.S. trade by value with Canada and Mexico moves on land.

U.S.-Canada surface transportation trade totaled $29.0 billion in January, down 31.1% compared to January 2008. The value of imports carried by truck was 31.3% lower in January 2009 compared to January 2008, while the value of exports carried by truck was 27.2% lower.

U.S.-Mexico surface transportation trade totaled $18.5 billion in January, down 20.0% compared to January 2008. The value of imports carried by truck was 20.5% lower in January 2009 than January 2008, while the value of exports carried by truck was 10.7% lower.

The value of U.S. surface transportation trade with Canada and Mexico in January 2009 was up 3.9% compared to January 2004, and up 31.6% compared to January 1999. Imports in January were up 26.4% compared to January 1999, while exports were up 38.1%.

A full copy of the report is available on the BTS Web site.

On November 19, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) released data as part of an annual update of the North American Transportation Statistics (NATS) online database. The NATS database is co-sponsored by BTS and the U.S. Census Bureau with the federal-level transportation and statistical agencies of Canada and Mexico.

According to BTS, goods valued at more than $909 billion crossed the U.S. border in trade with Canada and Mexico in 2007, 4.9% higher than the previous record set in 2006.

Freight weighing nearly 606 million tons was transported through U.S. land borders, airports, and seaports to and from locations in Canada and Mexico in 2007. U.S. merchandise trade with Canada and Mexico rose by more than $305 billion, or by 50.6%, between 2002 and 2007.

The value of freight shipments moving between the United States, Canada, and Mexico grew at an average annual rate of nearly 8.5% per year between 2002 and 2007. The total value of U.S. freight shipments with Mexico grew 49.5% or 8.4% annually. Goods shipped in trade with Canada grew 51.2% or 8.6% annually.Trucks carried 61% of this freight measured by value - $555 billion in 2007. Rail carried 15%, followed by maritime with 7%, pipeline with 8%, and air with 4%. Trucking saw the largest modal increase in shipment value from 2006 to 2007 (up $21 billion), followed by rail (up $9 billion) and pipeline (up $4 billion).

The often-criticized cross-border trucking demonstration project will be extended for 2 years, John H. Hill, Federal Motor Carrier Safety Administrator, has announced. He released the following statement:

“I am pleased with the success of our demonstration project, but the participation has been limited by the uncertainty of the project’s longevity. A number of potential companies have been unwilling to invest the time and resources necessary to participate due to uncertainties concerning the project’s longevity.

“We intend this extension to reassure trucking companies that they will have sufficient time to realize a return on their investment, and we anticipate additional participation with this extra time. The extension will ensure that the demonstration project can be reviewed and evaluated on the basis of a more comprehensive body of data.

“FMCSA has adhered to the law and exceeded requirements established by Congress, both safety and otherwise, for implementing our obligations under NAFTA. To date, the project has shown that U.S. and Mexican carriers can engage in cross-border trucking operations in compliance with applicable laws and with no compromise to public safety or security. In fact, Mexican trucks and drivers have established compliance rates equal or better to those of U.S. trucks and drivers.

“Since 75% of our trade with Mexico moves by truck, transportation efficiency is key to the competitiveness of our manufacturers, ranchers, and farmers. This project supports our economy by saving consumers’ money, reducing shipping costs and giving U.S. trucking companies and drivers new opportunities. At a time of surging goods exports, we could hardly choose a worse time to turn our back on open trade and investment and embrace a protectionist agenda, especially in the very sector that makes trade in goods and services possible.”

On July 29, Rep. Peter DeFazio (D-Ore.), Chairman of the House Subcommittee on Highways and Transit, Rep. James Oberstar (D-Minn.), Chairman of the House Transportation and Infrastructure Committee, Rep. John Mica (R-Fla.), Ranking Member on the House Transportation and Infrastructure Committee, and Rep. John Duncan (R-Tenn.), Ranking Member on the House Subcommittee on Highways and Transit introduced H.R. 6630, legislation to stop the Department of Transportation (DOT) from fully opening the U.S. border to Mexican trucks.

The bill also would prohibit the Transportation Secretary from granting authority to a motor carrier domiciled in Mexico to operate beyond United States municipalities and commercial zones on the United States-Mexico border after September 6, 2008.

“As we approach the end of the one year Mexican truck demonstration program, I have introduced bipartisan legislation that will terminate the program and force DOT to fully evaluate the results before it rushes to open the border. All along DOT has said this would be a one year pilot so I’m holding them to their word,” DeFazio said. “DOT needs to look at how much this pilot has cost and the impact it has had on overall motor carrier safety. This Administration has been hell-bent on opening up our border but over the past year has failed to show they can adequately inspect Mexican carriers while also maintaining a robust U.S. safety inspection program. The safety of the traveling public must come first — before the Administration’s fantasies about free trade.”

“When DOT insisted on moving ahead with a one-year pilot program, it disregarded Congressional objections and concerns over safety. Strong bi-partisan majorities in both the House and Senate tried to shut the program down, but DOT forged ahead, in violation of the spirit of the law and against the express will of Congress,” Oberstar said. “The Secretary has said in very clear terms that DOT’s experiment would be limited to one year. This bill will ensure that the Administration keeps its word.”

The extension of the demonstration project is discussed in a Federal Register notice.

The Freight Transportation Services Index (TSI) rose 1.9% in May from its April level, the largest monthly increase since January, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported Wednesday.

After an increase in January that was the largest in 2 years, the freight index failed to advance over the 3 months ending in April, before rising in May to return to its January level. At 111.4 in May, the freight TSI was up 3.2% since its recent low of 108.0 in September 2007 but down 1.5% from its peak of 113.1, reached in November 2005. For additional historical data, go to the TSI section of the BTS Web site.

The 2.8% increase in the freight index since December marked the fifth consecutive year the index increased in the first 5 months.

The freight TSI measures the month-to-month changes in the output of services provided by the for-hire freight transportation industries. The index consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

The May 2008 freight TSI level was 2.1% above the May 2007 level of 109.2. The freight index remains below its May 2005 level of 111.7.

Despite declines from the May 2005 level, the freight index has increased 8.7% in 5 years and 10.9% in 10 years. The TSI is a seasonally adjusted index that measures changes from the monthly average of the base year of 2000. It includes historic data from 1990 to the present. Release of the June index is scheduled for Aug. 13.

BTS has issued a new technical report explaining the TSI, BTS Technical Report: Transportation Services Index and the Economy.

The Freight Transportation Services Index (TSI) was unchanged in April from its March level following the largest monthly decline since August 2006, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported on Wednesday.

Since an increase in January that was the largest in two years, the freight index has failed to advance for three consecutive months. The index was unchanged in February and April with a decline in March. At 109.4 in April, the freight TSI was up 1.3% since its recent low of 108.0 in September but down 3.3% from its peak of 113.1 reached in November 2005. For additional historical data, go to TSI section of the BTS Web site.

The 0.9% increase in the freight index since December marked the second consecutive year the index increased in the first four months.

The freight TSI measures the month-to-month changes in the output of services provided by the for-hire freight transportation industries. The index consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

The April freight TSI level of 109.4 was marginally higher than the April 2007 level of 109.3 and follows two consecutive April-to-April declines. The index remains below the level of 110.5 achieved four years ago in April 2004.

Despite declines from recent April levels, the freight index has increased 5.3% in five years and 8.9% in 10 years. The TSI is a seasonally adjusted index that measures changes from the monthly average of the base year of 2000. It includes historic data from 1990 to the present. Release of the May index is scheduled for July 9.

BTS has issued a new technical report explaining the TSI: BTS Technical Report: Transportation Services Index and the Economy.

On June 2, U.S. Transportation Secretary Mary E. Peters announced that the U.S. Department of Transportation (DOT) is looking for innovative ways to fight congestion at some of the nation’s busiest border crossings.

“It’s time to put an end to the kind of delays that keep families and businesses at a standstill at our borders,” Secretary Peters said.

The Secretary said that the Department is requesting proposals for new approaches to ending traffic tie-ups at some of the most congested crossings. She added that the Department would select at least two projects each along the Canadian and Mexican borders.

Peter’s said the effort was needed because, over the last 2 decades, the value of freight shipments among the United States, Canada, and Mexico has risen by 170%, growing an average of 8% annually.

She noted that this increasing demand has led to longer delays at the crossings. In 2007, Secretary Peters noted, U.S.-bound traffic from Canada experienced delays up to 3 hours at many crossings, costing businesses more than $14 billion annually. On the Mexico side, San Diego County alone loses $271 million in annual revenue due to delays at the border, she added.

“We’re looking for solutions to the congestion at our borders that is frustrating individuals and stifling commerce,” Acting Federal Highway Administrator Jim Ray said.