Experts: Infrastructure Needs Over $100 Billion in Overhaul

June 24, 2013

Carl O'Donnell, Philadelphia Business Journal

Former Pennsylvania Gov. Ed Rendell has a gripe with the U.S. infrastructure.

The United States is ranked 18th in the world for ports and 22nd for rail, according to a recent study. Things are far worse for air transit, as the United States ranks 33rd – behind Panama and Malaysia. The annual report card about nations’ infrastructure by the American Society of Civil Engineers gave the U.S. a D+.

To fix this, Rendell said, we would need to invest $3.6 trillion by 2020. Planned investment falls $1.6 trillion short. Investment in the Philadelphia region doesn't buck this trend. Without hundreds of billions for expansions and repair, air traffic will bottleneck, commuter rail will decay, roads will wear out, and opportunities to spur growth will fade away, said Steve Wray, the executive director of the Economy League of Greater Philadelphia.

A June 20 event hosted by the Economy League explored ways to stop this. The event was part of a larger initiative known as World Class Greater Philadelphia. This initiative, led by the League, convenes business and civic leaders, nonprofits, subject matter experts and others to address three areas vital to Pennsylvania’s future economic prosperity: education, business growth and infrastructure.

To enhance the region’s global and national connections, improve Philadelphia’s airport, intercity rail and freight transit, Wray said. The city would be more attractive to business if Philadelphia International Airport offered more nonstop international flights. This could be achieved by shepherding the airport’s Capacity Enhancement Program to completion, making the business case for more international flights, and improving transit to the airport.

Philly’s Amtrak ridership has grown 27 percent since 1997, helping position 30th Street as the third busiest station in the country. But maintaining the northeast corridor will require $52 billion over the next 20 years. “Amtrak’s Acela Express is making money hand-over-fist,” said Rendell. “It can hit 160 miles per hour. Problem is, right now it’s only safe to hit those speeds on about 35 miles of track.” The value of freight shipments is expected to increase 85 percent between 2002 and 2035 due to factors including Pennsylvania’s shale boom, the construction of a major Sunoco facility, the widening of the Panama Canal, and the dredging of the Delaware River.

But to take full advantage, said Wray, the region must add new freight track and increase vertical clearance to make way for double-stack rail cars.

Enhancing regional mobility requires bringing SEPTA to a state of good repair; upgrading worn roads and bridges; and strengthening connections between the region’s economic hubs, said Wray. Unfortunately, the region is currently $67.5 billion short of addressing these problems.

Only 65 percent of SEPTA’s infrastructure is in a state of good repair. But the backlog of repairs totals $4.7 billion, and grows each year due to inadequate funding, said Wray. The situation with roads and bridges is worse. Pennsylvania has more structurally deficient bridges than any other state in the country. In the next 25 years, over 2,200 will need to be rehabilitated.

Meanwhile, 22,300 miles of road will need to be resurfaced and replaced. But even with such large repair costs looming, said Wray, the region must find funds for new projects, or opportunities to connect high growth hubs to the city and each other will be lost. The most vital expansions include connecting the Broad Street Line to the Navy Yard, and better connecting Philly with King of Prussia, Valley Forge and South Jersey. Sustainable systems The League’s final proposal involved improving the region’s sustainability by enhancing water and energy infrastructure, and expanding parks. Water is the most urgent, Wray said. To keep the region’s water supply safe, Pennsylvania must invest $9.3 billion, and New Jersey must invest $5 billion.

“Unfortunately, this presentation is preaching to the choir,” said Terence Farrell, Chester County Commissioner. “The dilemma is teaching the general public that pushing off investments in infrastructure comes at a big cost in terms of quality of life.”

Read the article on the Philadelphia Business Journal Website >>