Transportation Market Recap, September 2023

By FirmoGraphs Staff
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The September 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

Drivers

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

Governor Hochul Announces Adoption of First-in-the-nation ‘buy Clean Concrete’ Mandate for State Agencies

Status: Proposed

Organization: State of New York

Summary: On September 19, 2023, the Governor of New York State adopted the ""Buy Clean Concrete"" rules, establishing emission limits for concrete used in state-funded projects. These regulations target projects exceeding $1 million with over 50 cubic yards of concrete or Department of Transportation contracts surpassing $3 million with a minimum of 200 cubic yards of concrete. Exceptions are made for emergency projects and those requiring specialized concrete. The data will be used to establish lower greenhouse gas emissions limits from concrete, starting in 2027. In addition, Environmental Product Declarations (EPDs) will be implemented from 2025 onward, offering insights into emissions associated with concrete used in state construction projects to enhance transparency and support informed decision-making. The rules will come into effect on January 1, 2025.

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Biden-Harris Administration Opens Applications for Nearly $10 Billion in Funding to Improve Nation’s Bridges

Status: Effective

Organization: U.S. Department of Transportation

Summary: On September 30, 2023, the U.S. Department of Transportation's Federal Highway Administration (FHWA) initiated the application process for nearly $10 billion in funding for fiscal years 2023-2026 through the competitive ""Large Bridge Project"" category of the Bridge Investment Program. This funding opportunity supports projects exceeding $100 million, addressing vital bridges that play a crucial role in connecting communities, facilitating the transportation of goods, enhancing travel efficiency, and boosting local economies. The program allows for a single application encompassing all four fiscal years, streamlining the funding process for applicants. The program has been enhanced with key updates, including refined merit criteria to provide effective guidance to applicants, an updated ""smart application"" template to ensure smooth completion, a novel Benefit-Cost Analysis tool aiding in comprehensive project analysis, and the introduction of an optional initial eligibility screening to offer an opportunity for revised submissions if deemed incomplete or ineligible. Additionally, funding opportunities will soon be available for bridge projects up to $100 million, fostering a pipeline of future projects through smaller grants to aid communities in advancing their bridge initiatives.

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Notable Capital Improvement Programs

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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.

Southern California Regional Rail Authority - Metrolink, California, Planned Capital Expenditure Increased by 31%

In the CIP covering the 2024-2029 fiscal year, Southern California Regional Rail Authority - Metrolink, California detailed plans to spend $150 million on capital projects, an increase of 31% from nearly $115 million in its 2023-2028 CIP. The current CIP has 46 line items, compared to 6 line items in the prior CIP. The table below breaks down Southern California Regional Rail Authority’s planned capital spending by business area for its last two CIPs.

metrolink capital spending table

Increase Due to New Projects and Business Areas

Planned spending in the Holmans category increased largely by 1,391% due to new projects in the recent CIP including Bombardier Railcar Rebuild, worth $35 million. There are also two new business areas, Zavalal and Shahids with 9 and 16 projects, respectively. 

Holmans Project To Receive Over $25 Million

The Southern California Regional Rail Authority has only one notable line item valued at over $25 million. The project belongs to the Holmans category, the Bombardier Railcar Rebuild, worth $35 million. The project includes rebuilding and rehabilitation of the revenue fleet of railcars and cab cars, lifecycle extension to support the daily service, rehabilitation of long term dwell cars to increase availability and overhaul as required by FTA. 

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Hampton Roads Transit, Virginia, Planned Capital Expenditure Increased By 49%

In the CIP covering the 2024-2028 fiscal year, Hampton Roads Transit, Virginia, detailed plans to spend nearly $382 million on capital projects, an increase of 49% from $567 million in its 2023-2027 CIP. The current CIP has 63 line items, compared to 61 line items in the prior CIP. The table below breaks down Hampton Roads planned capital spending by business area for its last two CIPs.

hampton roads transit virginia capital spending table

Increase in Planned Spending Due to New and Ongoing Projects

Planned spending in the Facilities category increased largely by 136%. The increase goes to new projects, the New Southside Operating Division and Hampton Facility Electrification, worth nearly $113 million and $47 million. The Operations category also increased by 37% due to ongoing projects including the Transit Bus Replacement which went up by $55 million. 

Projects Under Facilities Will Receive Over $100 Million of Investment

Hampton Roads has one notable project valued at over $100 million and one valued at over $40 million, both belonging to the Facilities category. The New Southside Operating Division is the most significant project, worth nearly $113 million. The project will relocate and replace the Parks Avenue operating and maintenance base with a new facility that can serve the Southside. Another $47 million is planned for the Hampton Facility Electrification. This project will provide the base infrastructure for a fully-electrified revenue bus fleet at the Victoria Boulevard Facility in Hampton, plus twenty battery electric bus chargers. In addition, the facility is also expected to grow to 100 electric vehicle chargers through future expansions outside the timeframe of this ten-year CIP to align with fleet replacement needs.

Click Here to See Hampton Roads Transit, Virginia CIP

What We Are Reading

Reading News and Market Updates

Here are some recent articles our team has been reading:

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