The Time for Natural-Gas Trucking Is Now
- By Andrew J. Littlefair
- June 7, 2013, 1:05 p.m.
United Parcel Service s announcement that it plans to expand its fleet of trucks running on liquefied natural gas, or LNG, to 800 by the end of next year is just the latest in a line of companies casting their vote for natural gas as the preferred commercial vehicle fuel. UPS joins AT&T, Frito-Lay, Republic Services, Ryder, Swift, Waste Management and many others making the switch to American natural gas.
In recognizing the potential of natural gas , the Senate Energy and Natural Resources Committee recently held hearings on what role the federal government can play to ensure that more American companies move more American goods on trucks running on American fuel.
Just last month, bipartisan legislation was introduced to ensure that American LNG currently taxed at a rate about 70 percent higher than diesel on an energy equivalent basis is taxed the same as diesel, following six state legislatures that have addressed the disparity on a state level.
What does all this activity say to me? The time for natural-gas trucking is now.
And why not? Cleaner, cheaper and more abundant than any other alternative vehicle fuel, natural gas is a clear winner.
It s also uniquely American. About 98 percent of natural gas consumed in North America is domestically produced, so increasing use of natural-gas vehicles reduces our dependence on foreign oil and enhances our nation s energy security.
But we must seize the moment. We have reached a critical juncture and have the opportunity to accelerate the positive momentum already in place.
The logical next step for natural gas, from both a strategic and an economic viewpoint, is to maximize its use in our heavy-duty, regional and long-haul trucking fleets. Today, shipping goods from the East Coast to the West Coast poses a dilemma because of the high cost of diesel and the added regulations on that dirtier fuel. Natural gas offers an immediate solution.
The United States needs to adapt its heavy-duty, long-distance fleet to use natural gas, which would reduce the energy, time and environmental cost significantly. In the past, the challenge has been that the infrastructure in the form of natural-gas fueling stations was in its infancy and arguably unable to handle such a swift increase in activity.
Not anymore, thanks in part to the development of America s Natural Gas Highway, Clean Energy Fuels network of natural-gas stations that enable truckers to travel coast-to-coast and border-to-border on this clean, affordable and domestic source of energy.
We have already completed more than 70 new natural-gas truck fueling stations along highways that link major U.S. metropolitan areas. This year, we have plans to complete additional stations adjacent to long-haul trucking routes and around major warehouse distribution centers in North America. Major highway segments now completed include, among others, those linking the Southwest Corridor, Los Angeles to Atlanta, the Texas Triangle, Atlanta to Chicago to Texas, and major corridors in the Midwest and Northeast. Other energy companies have announced similar plans as well.
Moving our nation s trucks to natural gas makes economic and environmental sense. This market currently consumes 30 billion gallons of diesel annually, much of which is imported. A conversion to natural gas could represent huge savings for shippers, carriers and eventually consumers, given the high cost of diesel. For those concerned about the environment, NGVs emit up to 30 percent less greenhouse gas than gasoline or diesel vehicles.
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References
- ^ comments powered by Disqus. (disqus.com)
- ^ comments powered by (disqus.com)
Tanzania to host major freight forwarders meet
Tanzania businesses are set to benefit from vast opportunities by hosting the Region Africa and Middle East meeting (RAME) which will bring together over 300 participants in freight forwarding industry.
President of Tanzania1 Freight Forwarders Association (TAFFA), Mr Stephen Ngatunga
The international conference will be attended by senior clearing agents, freight forwarders, business delegates in addition to government officials, ambassadors and trade representatives from Africa and Middle East and beyond.
The meeting is an opportunity for any organisation with an interest in freight forwarding to network and make business connections, according to President of Tanzania Freight Forwarders Association (TAFFA), Mr Stephen Ngatunga.
Having a high profile event such as RAME will go a long way towards improving and marketing businesses further. We want to show the world that Tanzania is an ideal gateway for regional trade, Mr Ngatunga told a news conference in Dar es Salaam2 yesterday.
With a theme; Towards more sustainable regional freight forwarding partnerships, the forum comes at a time when Tanzania is embarking on an expansion and modernisation of ports and railway lines.
There are vast opportunities for business growth to be unlocked in Tanzania in terms of clearing and freight forwarding if neighbouring landlocked countries use Dar es Salaam port through the central corridor as transportation hub, the TAFFA boss observed.
By ALVAR MWAKYUSA, Tanzania Daily News3
References
- ^ Tanzania (in2eastafrica.net)
- ^ Dar es Salaam (in2eastafrica.net)
- ^ Tanzania Daily News (dailynews.co.tz)
Panjiva partnership opens doors for global trade professionals to …
Panjiva1, an online search engine with detailed information on global suppliers and manufacturers, recently announced that through a partnership with Export to China (ETCN) it is the first company to make Chinese trade data accessible in searchable company profiles.
ETCN is a Chinese information, consulting, and commercial platform helping international enterprises with China import-export trade.
Panjiva said it now holds rights to publish ETCN data in this searchable format, in turn providing its customers with insight into Chinese-based suppliers and customers. And it explained that this agreement provides its customers with various facets of Chinese trade data with information on active companies and potential trade partners in 17 industries, including textiles and apparel, furniture, auto and auto parts, and pharmaceuticals. Panjiva can also now provide customers with information and data on:-shipments to and from not only the U.S., but also every country around the world;-breakdown of the dollar value of goods shipped to each country;-mode of transport, such as vessel or air; and-enterprise nature, including state-owned, private and foreign-invested
Data provided by ETCN for Panjiva is based on Chinese government data that is made available to ETCN.
What we have now is trade data describing import and export activities for about 200,000 companies in China, said Panjiva CEO Josh Green in an interview. It cuts across a wide variety of product categories from apparel to hardware to furniture, toys, and auto parts and others. It is part of a broad spectrum.
What makes this partnership particularly interesting, Green said, is that for the first time it is going to put a set of companies on to the radar of global trade professionals and describe these companies based on their export activity out of China regardless of where their goods are bound for.
And Panjiva is now going to be able to provide a more complete view of the trade activity of Chinese companies.
The U.S. import data we have used for a long time tells you a lot about what companies in China are doing as well as in the rest of the world, said Green. And now with this Chinese trade data we can provide a comprehensive view of what these companies are doing globally in terms of what products they are specializing in across their global customer base and what regions of the world they are selling goods to and helps to provide a better sense of how important or unimportant it may be to that company.
Green added this information will be particularly beneficial to sourcing and procurement professionals as they will get access to a whole new set of companies and have a greater picture of companies they are talking to. And for those selling goods and services will find value in that they will have a clearer sense of what companies they should be targeting.
When asked how to assess China s economy at a time when the global economic outlook is muted to a degree, Green said that it is a bit of a mixed bag.
This has to do with the indicators we are seeing, he said. It does not feel like we are facing imminent collapse or anything like that, and we don t see significant downside risks in the market. But we don t think global trade is taking off any time soon either and modest growth is what it feels like in terms of the trajectory we are on. China has its hands full in terms of managing an economy that is changing so rapidly. More specifically to trade there was talk of China losing its dominance in manufacturing and our customers have talked of a desire of moving beyond China due to rising wages and some say the cost advantage is not as strong as it used. That is a real dynamic and lots of folks have acted on a desire to diversify beyond China. Over last decade of so, the Chinese manufacturing base developed a capabilities advantage that is proving to be durable and as a result people are finding it harder than they thought to go elsewhere as the capabilities they have come to rely on in China s manufacturing base are not there in other countries and appears to be going strong and looks like it will continue for some time.
References
In 2012 Catalonia exported 58.282 million euros, 5% more than in …
Posted on 14, May 2013
According to statistics from ICEX, Idescat, The World Trade Organization and the Export1 Climate survey from ACC1 ‘, over 45,000 Catalan companies were encouraged to export their products in 2012 and of these, approximately 14,000 are regular exporters today. This means that currently, exports represent a 28,1% of the Catalan GDP and it is estimated that this percentage will continue to increase in the coming years so entrepreneurs will increase their interest in sell and promote their products in other countries, especially in emerging markets such as Latin America, where the economic growth is evident.
During 2012 Catalan exports to Latin America increased a 21% being the main recipient countries Argentina, Venezuela, Mexico2, Peru and Colombia. It is also estimated that although most of the exports are from major Catalan companies, Latin America represents a great opportunity for small and medium businesses that intend to extend their export process and can take advantage of the catalan prestige that large enterprises have left in this area.
The main export sectors are chemicals and pharmaceuticals with 25.9%, automotive with 16.5%, agri-food with 11.6%, textile, metallurgical and machinery with a 6.4% each, and finally the electricity sector with 4.7% With the publication of this figures, the Catalan Government seeks to encourage other sector and entrepreneurs to increase their exports.
Tuscor Lloyds3
Tuscor Lloyds is a global freight forwarder and shipping agent specialising in the transportation of project cargoes. Our team of break bulk, out of gauge, abnormal load and multimodal specialists have the skills and resources to transport cargo to some of the worlds most remote destinations.
Connect with Tuscor Lloyds on Google+4
References
- ^ Export (www.tuscorlloyds.com)
- ^ Mexico (www.tuscorlloyds.com)
- ^ Tuscor Lloyds (www.tuscorlloyds.com)
- ^ Tuscor Lloyds on Google+ (plus.google.com)
Love Your Bike – Manchester Friends of the Earth
A small and unnoticed change in European rules could let massive new mega-trucks which are up to 25 metres, or 80 feet, long into the UK. The European Commission, which is pushing for this change, itself admits they are dangerous, particularly for pedestrians and cyclists. The trucks also damage roads and create unfair competition for more environmentally-friendly freight-on-rail. 
Some countries already allow mega-trucks on their roads but this proposal would mean they could travel between countries that agree to them. This would effectively allow mega-trucks in by the back door as they would become standard across much of Europe.
Even the European Commission research of January 2009 admitted that mega trucks are more dangerous than existing HGVs. The main reasons for increased collision risks are handling and manoeuvrability problems including snaking, larger blind spots, extra weight and size. Currently HGVs are disproportionately involved in serious accidents with other road users. In 2010, they made up about 3% of the EU vehicle feet but gave rise to 14% of fatal collisions.
The UK government has already buckled under pressure from the road haulage industry and allowed trials of 7 feet longer HGVs. We need to throw out the European Commission s proposal now before more pressure from the road haulage industry pushes the government into accepting mega-trucks in to the UK.
Please email your European Members of Parliament (MEPs) and ask them to oppose mega trucks being allowed to travel internationally to avoid these monster vehicles coming to the UK via the back door. You can contact your NW MEPs via the Write to Them1 website or directly with the email addresses below.
The Freight on Rail network has produced a useful briefing (April 2013)2 and a suggested email text3 which is also listed below.
NW European Members of Parliament email addresses (Alphabetical order)
Robert Atkins (Conservative) ratikins@europarl.eu.intJacqueline Foster (Conservative) jacqueline.foster@europarl.europa.euArlene McCarthy (Labour) arlene.mccarthy@easynet.co.ukChris Davies (Liberal Democrat) chris@chrisdaviesmep.org.ukSajjad Karim (Conservative) info@sajjad.karim.org.ukPaul Nuttall (UKIP) paul.nuttall@europarl.europa.euBrian Simpson (Labour) briansimpson.labour@virgin.net
Video shows how dangerous mega trucks are.
Suggested email text:
Dear MEP
I am writing to express my huge concern about the revision of legislation governing the weights and dimensions of HGVs as I believe it will lead to bigger heavier lorries coming to the UK over time. The European Commission wants to allow cross border traffic of 25 metre (82 ft) lorries between consenting member states. What will happen is that more and more countries will be pressurised by their road haulage industry to allow these massive lorries on competition grounds.
While the UK Government says it will not allow mega trucks to come to the UK it will be lobbied by the road haulage industry which has an insatiable appetite for bigger heavier lorries. In fact the UK Government buckled to pressure from the road haulage industry in 2012 by allowing 7 ft longer lorries on our roads which are already congested and not designed for vehicles of these proportions.
Even the European Commission s own research showed that mega trucks are more dangerous than existing HGVs 1.Because of the double articulation needed for manoeuvrability in urban areas there is a serious loss of stability at cruising speeds which increases risk of snaking, for example changing lanes 2.
Previous increases in lorry dimensions have resulted in more lorries driving around less full, causing more road congestion and more pollution, which is the reverse of what was claimed would happen. The proponents of mega trucks are using the same flawed arguments again. More than one in four lorries is driving around empty and almost half of lorries in the UK are driving around partially empty so why if hauliers cannot fill existing sized lorries how would they fill even bigger ones? Hauliers tend to buy the largest vehicle permitted and use it for large and small loads irrespective of the impact on road congestion and the environment 3.
The promoters are claiming that these vehicles will be restricted to motorways, dual carriageways and major roads. However, trying to restrict mega trucks to dual-carriageways and motorways will not work; the reality is that these vehicles will need local road access to distribution hubs on local roads
Allowing mega trucks will lead to more road fatalities, more congestion and more pollution and will be disastrous for the rail freight industry which has the potential to take thousands more long distance lorry journeys off the road reducing congestion, road accidents and carbon emissions.
Yours etc.1. TML Effects of adapting the rules on weights and dimensions of HGVs P14 penultimate line 6 November 2008 DGTREN website.
2. Source Table 26/27 Assessment results of the handling characteristics Knight & Wohrmann 2008
3. Analysis of previous increases in HGV sizes and efficiency of existing sized lorries- MTRU4
References
- ^ Write to Them (www.writetothem.com)
- ^ briefing (April 2013) (www.freightonrail.org.uk)
- ^ suggested email text (www.freightonrail.org.uk)
- ^ Analysis of previous increases in HGV sizes and efficiency of existing sized lorries- MTRU (www.freightonrail.org.uk)
Minister Announces Funding for Vulnerable Road Users Campaign …
A campaign to boost road safety by cutting conflict between cyclists and motorists has been awarded 424,000 by Transport Scotland1.Transport Minister Keith Brown announced the additional funding for Cycling Scotland s Mutual Respect Campaign at the opening of Scotland s first Rail Cycle Hub2 at Stirling Railway Station.
The campaign will be launched in August to help create a culture of mutual respect between cyclists, pedestrians, motorists and other road users across the country.
Transport Minister Keith Brown said:
Scotland has its lowest road casualty figures since records began, however the level of cyclist and pedestrian casualties is still too high. I have allocated additional funds to Cycling Scotland to develop and run a substantial long-term media and educational campaign to help change behaviour on our roads.
The Scottish Government is providing significant investment for the infrastructure needed to support active travel across Scotland, in both urban and rural areas, as an essential contribution to the partnership endeavour required across the public sector, with local authorities in particular playing a highly important role.
I am delighted to make this announcement at the opening of Scotland s first Rail Cycle Hub this morning. The Cycle Hub Team will provide support and expert knowledge on local routes and networks and local visitor attractions. Hopefully this will be the first of many cycle hubs across Scotland and will encourage more people to get on their bikes.
The Stirling Cycle Hub is funded by Transport Scotland, in partnership with ScotRail and will be managed by Forth Environment Link.
Steve Montgomery, ScotRail s managing director, said:
The Stirling Cycle Hub is an exciting project aimed at encouraging more people to get on their bikes, and we are delighted to support it. We re committed to improving facilities for cyclists using Scotland s railways and are currently installing more than 200 extra cycle spaces at stations across the network.
Ian Aitken, chief executive of Cycling Scotland said:
I am delighted that the Scottish Government has allocated additional funding to Cycling Scotland for this awareness campaign. We will be working with partners from the cycling, motoring, pedestrian and road haulage sectors to create a campaign that helps to make the roads safer and friendlier. The campaign will be talking to all road users, and looking at ways we can all make small changes to our behaviour to make Scotland s roads a more harmonious place.
Jane Cullingworth, executive director of Forth Environment Link said:
We are thrilled to be opening the Cycle Hub. The hub will be a key community resource not just for those already cycling but for the many people out there who have bikes gathering dust or who have never thought of getting on a bike. We hope that the hub will inspire people to get cycling and we welcome people to come by this weekend for our launch.
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References
- ^ Transport Scotland (www.transportscotland.gov.uk)
- ^ Cycle Hub (www.stirlingcyclehub.org)
Maverick USA, JB Hunt Lead Trucking Performance | Arkansas …
2012 proved to be a mixed year for trucking revenue in Arkansas, though three standout performers two good, one not so much blew by their peers on the list of the largest trucking companies doing business in the state.
Maverick USA of North Little Rock reported a nearly 20 percent increase in revenue last year. And J.B. Hunt Transport Services of Lowell saw revenue rise more than 12 percent.
On the very disappointing end of the sales spectrum stood USA Truck of Van Buren, which reported a revenue drop of almost 43 percent in 2012 compared with 2011.
Largest Trucking Companies: Click here to buy PDF and spreadsheet versions of the list of the state’s largest trucking companies1.
Largest Private Fleets: Click here to PDF and spreadsheet versions of the list of the largest private trucking fleet2.
J.B. Hunt s showing was strong enough to propel it past longtime second-place fixture YRC Worldwide, headquartered in Overland Park, Kan. J.B. Hunt reported just over $5 billion in 2012 revenue compared with $4.5 billion in 2011, putting it within striking distance of FedEx Freight s $5.3 billion first place.
Asked what J.B. Hunt was doing right, Jim Crowell, director of the Supply Chain Management Research Center at the University of Arkansas, provided a series of bullet points for transportation company winners:
- J.B. Hunt is adaptable.
- It knows how to manage the margins.
- It works well with others, such as railroads when implementing the multimodal segment of the business.
- It has a strong leadership team.
- It s forward thinking.
(Read this week’s cover story, J.B. Hunt s Origins Offer Lessons for Today3.)
J.B. Hunt started out as a trucking company, Crowell said. If you talk to them today, they will tell you that they are a supply chain service company. The reason for that is their ability to branch out. And they re doing a very good job managing margins.
It s no secret that they are probably one of the premier folks involved in the railroads on the multimodal side, so that has definitely been a very strong suit for them. They have a very strong dedicated fleet group. They also, like a lot of the major carriers, have created a brokerage group, he said.
What you re seeing is a lot of the larger, quote, traditional trucking companies they re evolving in a similar fashion, probably more so in response to the success of J.B. Hunt. That would be my opinion. That and two bucks will buy you coffee.
The self-effacing Crowell, however, hit on the takeaway: Other companies seeking success in what has continued to be a challenging economic environment are modeling themselves after the transport firm headquartered in Lowell, Arkansas.
References
- ^ Click here to buy PDF and spreadsheet versions of the list of the state’s largest trucking companies (www.arkansasbusiness.com)
- ^ Click here to PDF and spreadsheet versions of the list of the largest private trucking fleet (www.arkansasbusiness.com)
- ^ J.B. Hunt s Origins Offer Lessons for Today (www.arkansasbusiness.com)
Plan to showcase investments at export fair, county leaders urged …
By PONCIANO ODONGO ponwciano@yahoo.co.uk
Posted Saturday, April 27 2013 at 18:03
Kenya will host the sixth African International Export and Import fair in August.
The event organiser has urged county leaders to take advantage of the fair to showcase their investment opportunities.
The managing director of Exhibitions and Events Organisers, Mr Solomon Kinyanjui, said the four-day exhibition will held at the Kenyatta International Conference Centre in Nairobi.
The forum is meant to create an opportunity to establish business relationships with international consumers and offer participants an opportunity to explore joint ventures, exporting, licensing, counter trade, said Mr Kinyanjui.
He said the fair continues to positively contribute to the upgrading and development of export and import trade in Africa through opening channels of interaction and communication between relevant authorities, investors and stakeholders with interest in investing in Africa.
This is an opportunity to actively promote businesses and stimulate global business exchanges, said Mr Kinyanjui.
Some of the products expected to be exhibited are heavy construction equipment, trade finance products, agricultural technology, cargo logistics, medical equipment and pharmaceutical products.
The event will also promote investment opportunities in various counties.
Last year s event attracted three big investors to Kenya who are already warming up to settle, said Mr Kinyanjui.
The fair attracted 400 exhibitors from 100 countries and more than 10,000 visitors from 32 countries.
Among the countries that have shown interest in this year s event are China, United Arab Emirates, Pakistan and Iran.
The annual event has been supported by the government of Kenya through the ministry of Trade and Export Promotion Council for the last six years.
The import and export promotion in Kenya is in line with Vision 2030 whose agenda is to improve infrastructure, ICT and agricultural activities in the arid and semi-arid areas.
Local investors will learn more about export and import financing, cargo handling, international trade documentation, freight services, insurance services on cargo and finance.
Olathe trucking company at center of 41 Action News investigation …
OLATHE, Kan. – The Federal Motor Carrier Safety Administration says an Olathe trucking company at the center of a 41 Action News investigation on chameleon carriers will not be allowed back on the road.
The agency denied Freight, Inc. owner Binder Singh s appeal of their cease operations order that was issued in January.
RELATED | Investigation reveals chameleon carriers are dodging DOT regulation http://bit.ly/Yn05d31
Singh s company was the focus of a 41 Action News investigation into chameleon carriers. That is the term the trucking industry uses to describe companies that rack up safety violations, then shut down and reopen under new names and new Department of Transportation numbers. Chameleon carriers employ the strategy to avoid action by federal safety regulators.
The 41 Action News investigators uncovered safety regulators had given Freight, Inc a poor safety rating.2 The investigators also uncovered the Missouri Highway Patrol had stopped and issued citations to Singh s trucks seven times in 2012. On three separate occasions, troopers cited trucks owned by Singh for having breaks that were not operating correctly.
In 2008, the FMCSA had issued Singh an order to cease operations due to safety violations. However, Singh had found a way around the system.
Each time violations started stacking up against his company, documents show Singh opened a new company under a different family member s name and applied for a new DOT number. In all, four companies were linked to Singh.
All of the companies had one thing in common: Singh s home address in Olathe.
FMCSA reviewed our findings and issued a cease operations order against Singh.
Singh appealed that order. In interviews with FMCSA, Singh told the agencies all four companies were owned by different people and not to avoid compliance issues or hide anything.
FMCSA disagreed saying Singh did all of the hiring, firing and management of all of the companies in question. On Thursday, they once again ordered Singh to stop operating.
In a statement issued to 41 Action News on Thursday, FMCSA Administrator Anne Ferro said: Today s action is another step toward raising the bar for commercial and roadway safety. It sends a strong and important message that companies that attempt to evade safety regulations by reincarnating will be found and removed from the road.
The agency has been making an effort to identify and get chameleon carriers off the road following a report by the Government Accountability Office. It red-flagged more than a thousand companies auditors felt had chameleon attributes like similar officer names, addresses and phone numbers.
The report also found companies with those characteristics were three times more likely to be involved in a severe accident.
The 41 Action News investigators contacted Singh about the decision. He told us he has no comment.
You can read the entire FMCSA report on Singh s companies here: http://1.usa.gov/ZRAZDE3
Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
References
- ^ http://bit.ly/Yn05d3 (bit.ly)
- ^ a poor safety rating. (bit.ly)
- ^ http://1.usa.gov/ZRAZDE (1.usa.gov)
Alternative plan available for M4 relief road – Click on Wales
Ieuan Wyn Jones explores the dilemma the Welsh Government faces over the Bryn Glas tunnels bottleneck
April 11th, 2013
I once remember being told by Ian Grist, a junior Welsh Office minister in the 1980s that road schemes are always controversial. I was, by then, campaigning hard for the dualling of the A55 across Anglesey. In the event, the completion of the A55 across the island was relatively uncontroversial as these things go. But Ian Grist s adage was certainly true about the M4 relief road around Newport.
The economic case for the new road was being made by employers organisations such as the CBI and the Road Haulage Association. They felt that the delays around Newport were causing massive economic difficulties and was a barrier to investment in the area. The opposition came from environmental groups and those who wished to preserve unique wildlife habitats.
Soon after I became a Minister, a fatal road traffic accident closed the M4 near Newport and I appeared before the Senedd to make a statement. Once the motorway was closed, chaos ensued as there was no suitable alternative diversion to take the traffic. If a fatality is involved the police close the road as it is treated as a crime scene. A thorough examination usually means a closure for some hours. Even the opposite carriage can often be closed to prevent rubbernecking.
Following this early incident in my Ministerial career, I did not need much persuasion that something needed to be done to alleviate the traffic problems around Newport. The reduction of the three lanes to two at the Brynglas tunnels and the increase in traffic means that tailbacks are a daily occurrence at peak times.
The M4 around Newport is not up to current motorway standards. Originally built as a bypass for the city, it is too steep in some areas and some of the bends are more acute than one would expect on a motorway these days. It was not built to carry the volume of traffic we have today.
By 2004, the Labour administration in the Bay had concluded, on advice received from its own transport directorate, that a new section of M4 needed to be built around the south of the city. In order to keep clear of any built up areas and minimise disruption during the construction phase, a route was proposed which meant that the road cut through an environmentally sensitive area known as the Gwent levels which provide a habitat for a number of important wildlife species.
I was given the same advice as my predecessor when I became a Transport Minister in 2007, although I needed to be persuaded that the case was still robust and could be justified. Some of my officials, fearing that I might not continue with the project rather overstated the case for the new relief road. Nevertheless, I was prepared to look at it objectively, and come to my decision based on all the evidence which was available.
When the plan for the relief road was announced in 2004, the cost for the 15 mile section was estimated at 350 million. Even that figure had to be treated with some caution. Transport engineers will openly tell you that very often new schemes are underestimated so that they can be included in a forward road programme. This is known in the trade as optimism bias . However, it is also true that no scheme can be accurately costed until all the survey work has been done. So at best the 2004 figure was an estimate, and at worst was probably a substantial underestimate.
One of my early requests as Minister was to ask the transport directorate for details of every road scheme they had on their books, the cost of each scheme and what their future pipeline looked like. Once I received this information, I could see that many of the road schemes being planned were simply unaffordable within the capital funding I had at my disposal, and the work on the M4 relief road could only be done if sufficient funds could be raised under a Public/Private Partnership scheme. Since Private Finance Initiative was by then discredited, new forms of financing were being looked at. By now the cost of the scheme had rocketed to around 1 billion.
All these options had major drawbacks, since the Welsh Government had only two ways it could meet the interest payments, either by raiding the revenue budget or to raise tolls on the new road. I examined the plan to raise tolls extremely carefully. My officials had become extremely nervous about only raising tolls on the new section of the M4, as experience on the tolled section of the M6 showed that drivers were avoiding it in great numbers. Their advice was that tolls had to be raised on both the new and existing sections of the M4, a scenario which I found to be extremely unattractive. Paying tolls on the Severn Bridge was bad enough. Making motorists pay on the new and old sections of the M4 was a step too far. The public simply would not stand for it. The business case for the new road was also weaker if tolls had to be raised to pay for it.
When a new team took over senior positions within the Transport Directorate, their advice was that the M4 relief road as originally planned was by now simply unaffordable. I agreed with them.
However, I asked them to draw up an alternative plan, since doing nothing was not an option. They came up with a solution which would alleviate the worst of the traffic chaos, by purchasing a section of road which traversed the Llanwern steelworks site, and bring it up to dual carriageway standards. This road would link into the Southern Distributor Road around Newport and provide an alternative route for traffic. Given that much of the existing traffic on the M4 around Newport was local, some of the existing junctions would be reconfigured and closed with traffic redirected onto the alternative route. In the future, new tunnels could be constructed alongside the Brynglas tunnels should the increase in traffic continue well beyond current levels.
I can sympathise with the current Transport Minister, since she faces the same dilemma as I did. The UK government cannot force the Welsh Government to raise tolls and the Welsh Government should resist any pressure to so. My advice is to get on with the alternative plan I announced. It can be done quickly, it is more affordable, and avoids the controversy of building a new road on a sensitive site.
Tags: cardiff, infrastructure, M4, M4 Relief Road, Metro, Newport, Relief Road, south east Wales, the Valleys, transport, Transport Directorate12345678910
Ieuan Wyn Jones is AM for Ynys Mon and was Deputy First Minister and Minister for Economic Development and Transport in the 2007-11 One Wales Government.
Published on: Thursday, April 11th, 2013
Posted in: Economy11, Featured Article12, Politics13.
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References
- ^ cardiff (www.clickonwales.org)
- ^ infrastructure (www.clickonwales.org)
- ^ M4 Relief Road (www.clickonwales.org)
- ^ Metro (www.clickonwales.org)
- ^ Newport (www.clickonwales.org)
- ^ Relief Road (www.clickonwales.org)
- ^ south east Wales (www.clickonwales.org)
- ^ the Valleys (www.clickonwales.org)
- ^ transport (www.clickonwales.org)
- ^ Transport Directorate (www.clickonwales.org)
- ^ View all posts in Economy (www.clickonwales.org)
- ^ View all posts in Featured Article (www.clickonwales.org)
- ^ View all posts in Politics (www.clickonwales.org)
- ^ RSS 2.0 (www.clickonwales.org)
- ^ leave a response (www.clickonwales.org)
- ^ trackback (www.clickonwales.org)
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