According to the American Society of Civil Engineers, the United States is in significant need of
investment in its infrastructure. Much of it dates from the big building programmes
of the 1930’s and 50’s and requires expansion, replacement or repair.
We should stress that the issues explored in this video look at some of the worst-case
examples. The country is one of the world’s leading economies and is far from grinding halt.
Infrastructure is a huge enabler for America’s economy. It’s estimated that some USD $3.6TN
are needed to bring everything up to scratch by 2020 and that current investment trends
could end up costing American families USD $28,000 in income by then.
Public infrastructure spending as a share of the country’s GDP has dropped to almost
half that of European levels in recent years. The intent to address the issue is there,
but action has been slow due to America’s partisan political system and the shear level
of funding now required.
So where is action most needed?
The last major airport to be constructed in the US was Denver, some 20 years ago. Passenger
volumes have increased almost 12 times over since then and the squeeze is being felt in
some larger hubs with long queues at customs and check-in areas. Many air-traffic control
systems also need modernising to improve efficiency.
Vice-President Joe Biden infamously likened LaGuardia to a third world country, though
a major upgrade of that airport is now planned.
Airport Council International estimate that USD $75BN need to be spent on US airports
over the next 5 years.
The growth of the US economy is closely linked to its highway network, enabling the shipment
of goods around the country. The road system has played a key part in America’s economic
growth over the last 50 years.
The key challenge in upgrading the highways is funding. Highway fund revenues made up
of a mixture of fuel tax and the Federal / State-matched funding mechanism have proved increasing inefficient
at raising the sums needed. The Congressional Budget Office now estimate an annual shortfall
in highways funding of USD $15BN. Congress is forced to authorise transfers from the
US Treasury’s General Fund to make ends meet.
Solutions include private investment or additional taxes or mileage based fees on drivers, neither
of which are politically popular.
It’s a similar story for the country’s rail network. Some USD $20BN are required
just to upgrade Amtrak’s railway in the north east corridor.
In New York, the Hudson River tunnel is well over a hundred years old yet still handles
some 230,000 commuters every day.
The Portal Bridge that connects New Jersey with New York’s Penn Station was designed
in the 19th Century but has 450 trains crossing it every 24 hours – the most heavily trafficked
rail span in the western hemisphere. The bridge’s position on the river means that it must swing
open to enable large boats to pass. The rail tracks don’t always realign when it swings
back into place, causing delays for passengers. A much needed replacement is now planned.
Staying with bridges, the American Society of Civil Engineers estimate that 1 in 10 bridges
in the US are deemed to be “structurally deficient”. These bridges are safe, but
they now have reduced weight allowances and speed limits.
Compounding matters, some 14% of US bridges are deemed “functionally obsolete” meaning
that they are now no longer suited to their current task.
Washington DC’s Arlington Memorial Bridge – an example that sits particularly close
to Congress – was built in 1932 and now needs a USD $250M upgrade.
America’s inland waterways and canals move the equivalent of 51M lorry loads of goods
every year, yet more than half of these routes are now over 50 years old.
The US Army Corps of Engineers are responsible for maintaining much of the system and estimate
that USD $13BN need to be invested by 2020 on a mixture of new lock and dam facilities
and on improving the existing system. The situation is such that many barge operators
now support an increase in their own fuel taxes to help fund the works.
Much of the US budget allocated to waterways has been soaked up by a USD $3BN investment
project on the Ohio River which is expected to complete in 2020.
Just 4% of dams in the US are managed directly by the Federal government. Most are overseen
by State rather Federal funding and they lack the cash needed for maintenance and improvements.
Whilst none are in a dangerous condition, it’s estimated that an upgrade of all the
dams in need of repair would cost USD $21BN.
Whilst America’s ports are in comparatively good condition, the navigation channels to
them are in need of attention. Channels as deep as 45 feet (that's nearly 14 metres) must be
dredged to accommodate the new super-sized Panamax Ships. Such work does yield returns.
The American Society of Civil Engineers estimate that deepening a channel at the Port of Savannah
in Georgia by just 6 feet (or 1.8 meters) could reduce shipping costs by 15-20%.
Other considerations include the upgrading of the ageing pipeline networks carrying gas
and water, which could cost as much as USD $270BN. There’s also the need to further
develop 5G and superfast broadband capability, although policy incentives that drive private
investment in these areas have proved extremely effective in recent years.
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