Transportation Market Recap, April 2023

April 2023 Transportation Market Recap is a recap of some of the most interesting and useful transit industry news from the previous month. It contains updates on industry drivers, notable projects, and recent mergers and acquisitions, as well as some interesting reads, and upcoming meetings and conferences.

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Industry Drivers

Our data team tracks new and updated industry drivers. Here are some recent drivers we have been following this month:

EPA Proposes Updated Pollution Standards for Cars and Trucks to Accelerate Transition to a Clean-Transportation Future

Status: Proposed

Organization: U.S. Environmental Protection Agency (EPA)

Summary: On April 12, 2023, the U.S. Environmental Agency proposed new federal vehicle emissions standards to reduce carbon dioxide (CO2) emissions and address the climate crisis. The proposed standards aim to improve air quality nationwide and reduce reliance on oil imports. The regulations would also lower maintenance costs and save thousands of dollars over the lifespan of the vehicles that comply with them. The proposed standards would reduce CO2 emissions by almost 10 billion tons, equivalent to twice the total U.S. CO2 emissions in 2022. This reduction in emissions would save the average consumer $12,000 over the lifetime of a light-duty vehicle. In addition, the EPA proposes a suite of available emission control technologies that allow manufacturers to meet performance-based standards that suit their vehicle fleets. The new standards are also expected to accelerate the transition to electric vehicles (EVs) as manufacturers use clean technology. Additionally, the new standards aim to deliver significant health benefits by reducing fine particulate matter (PM) that can cause premature death, respiratory and cardiovascular illnesses, aggravated asthma, and decreased lung function. The proposed standards will apply to light-, medium-, and heavy-duty vehicles for the model year 2027 and beyond.

Click Here for More Information

FTA Announces over $14 Billion in Federal Funding to Support Public Transportation Across the U.S.

Status: Proposed

Organization: Federal Transit Administration

Summary: On April 13, 2023, the Federal Transit Administration (FTA) announced that a record $14 billion is being invested in states and transit agencies this year to improve public transportation. The funding will help communities maintain and operate the buses, trains, and ferries that provide more than half a million monthly transit trips. The funding is part of the annual formula funding program supporting nationwide transit systems. The program offers a lifeline for communities and helps create jobs, provide mobility, and address the climate crisis. The funding is the largest-ever annual investment in American public transportation and represents a 28% increase over previous funding levels. The FTA provides the backbone of transit agency budgets, enabling them to maintain and expand service. Transit formula funding is established based on population totals and transit ridership data set by Congress.

Click Here for More Information

Notable Capital Improvement Programs

Here are some recent, notable Capital Improvement Programs (CIPs). FirmoGraphs has deconstructed the CIPs into data elements, along with available project descriptions. Please feel free to request a meeting and review the data live in our business intelligence application.

City of Flagstaff, Arizona, Planned Capital Spending Increased by 27%

In the CIP covering the 2023-2027 fiscal years, City of Flagstaff, Arizona, detailed plans to spend $628.9 million on capital projects, an increase of 27% from $493.6 million in its 2022-2026 CIP. The current CIP has 276 discrete line items, compared to 253 line items in the prior CIP. The table below breaks down the Flagstaff's planned capital spending by business area for its last two CIPs.

Majority of Business Areas with a Significant increase

Among the eleven business areas in the City of Flagstaff, nine had increased capital spending. Planned expenditures in the Street/Transportation category increased by $52.7 million or 26% due to ten newly added projects in the current CIP, the $23 million increase in project value related to Lone Tree Railroad Overpass, and the $16.2 million freshly added project, such as Butler-Fourth Improvements. The second category is the General Government business which increased by 71% due to the $49.1 million planned spending on newly added projects. The third business area is Wastewater, which was mainly increased by 76% or $23.3 million due to a $16-million project, Wildcat - New Digester #3 & #4 Project.

Roadway Project to Get Nearly $70 Million of Investment

The City of Flagstaff, Arizona, recent CIP has two notable projects valued at more than $50 million. The largest project is Lone Tree Railroad Overpass, under the Street/Transportation business area, worth $67.8 million. This roadway project aims to provide a grade-separated crossing of the railroad tracks near downtown, connecting the Butler/Lone Tree intersection with Route 66. Next is the Ballot Initiative, worth $40 million under the General Government category. Lastly, the USGS Buildings is a program for the United States Geological Survey (USGS) Facility improvements, renovations, and building replacement contingent upon available funding worth $53 million.

Click Here to See City of Flagstaff, Arizona, CIP

Minneapolis-Saint Paul International Airport, Minnesota Planned Capital Spending Increased by 38%

In the CIP covering the 2023-2029 fiscal years, Minneapolis-Saint Paul International Airport, Minnesota (MSP) detailed plans to spend $3.4 billion on capital projects, an increase of 38% from $2.5 billion in its 2022-2028 CIP. The current CIP has 249 discrete line items, compared to 236 line items in the prior CIP. The table below breaks down MSP’s planned capital spending by business area for its last two CIPs.

Planned Spending Increases Due to New Projects

All of the nine business areas increased in the current CIP. The most significant increase goes to the MSP Long Term Comprehensive Plan. The 75% increase goes to the new project, the Concourse G Infill - Pod 2-3, worth $375 million. The MSP Maintenance/Facility Upgrade category also increases due to the Field Maintenance Building Efficiency Program, worth $204 million. The Terminal 1 Outbound Baggage Handling System Replacement, worth $250 million, is also a new project under the MSP End of Life/Replacement, which resulted in a 20% increase in this category.

Three Notable Projects Over $100 Million

The MSP has three projects valued at over $100 million and one at over $50 million. Listed below are the three notable projects:

• Expansion/Redevelopment of Concourse G Infill - Pod 2-3 - valued at $375 million, under the MSP Long Term Comprehensive Plan. This project will include new and upgraded restrooms, new moving walkways, new and miscellaneous relocations of tenant space within the project footprint. Work in 2023 represents Phase 1, including footings, foundations, and major utility work.
• Terminal 1 Outbound Baggage Handling System Replacement - valued at $250 million, under the MSP End of Life/Replacement category.
• North Gate Expansion - valued at $195 million, under the MSP Long Term Comprehensive Plan. 
• Air Handling Unit Replacement - valued at $78 million, under the MSP Ongoing Maintenance Programs category.

Click Here to See Minneapolis-Saint Paul International Airport, Minnesota, CIP

What We Are Reading

Here are some recent articles our team has been reading:

• Skanska wins $120M California highway interchange job
• To prevent wildlife-vehicle collisions, US DOT launches $350M pilot program
• FTA, Metropolitan Council sign $239.3 million FFGA for Gold Line BRT project
• CA: Sonoma County Transportation Authority distributes $50 million in transit funding
• Biden-Harris Administration Announces Nearly $300 Million for 9 Bridge Projects as Part of Investing in America Agenda
• WMATA Board approves $4.8 billion FY24 capital and operating budget
• New York budget agreement will provide more than $1.1 billion to MTA
• CalSTA awards 28 California transit projects $690 million in grants
• Biden-Harris Administration Opens Applications for First Year of $400M Competitive Grant Program to Reduce Truck Air Pollution at America’s Ports
• Biden-Harris Administration Opens Applications for $848 Million in Competitive Grant Funding to Make Roads, Bridges, Transit, Rail, and Ports More Resilient to Climate Change

Meeting Planner

In this over-digitized age, there is no replacement for face-to-face meetings with your prospects and customers! We track meetings of interest to our customers serving the U.S. transit industry so you won’t miss upcoming meetings and deadlines. Also, FirmoGraphs has recently implemented a free-of-charge service for tracking notable infrastructure events. 

Meetings in February and March 2023