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Sound Reasoning on Supply Chain Infrastructure

This article from Supply Chain management looks at the highways, airports, and seaways from an infrastructure and government standpoint. Executive editor Patrick Burnson explains how the current deficit and growing debt of America are “impacting the nation’s ability to build, upgrade and maintain transportation infrastructure.” Citing Robert Poole, director of transportation at Reason Foundation, the article explains how the U.S. is in the minority of developed countries which don’t use of revenue-based financing for transportation. In a recent study from the Reason Foundation, a few recommendations on how the United States could strengthen its supply chain infrastructure were developed, including the following: For airports and air traffic control, the study recommends separating the Air Traffic Organization from the Federal Aviation Administration, giving it the power to issue revenue bonds backed by the revenue from air traffic control fees and charges. It also calls for phasing out Airport Improvement Program grants for commercial airports, allowing them to self-fund via local airport passenger facility charges. For surface transportation, the report advises shifting federal transit funding to the general fund and local governments, permitting all federal gas tax revenues to be spent on highways and bridges. It also recommends lifting the federal ban on tolling Interstate highways when they require reconstruction and suggests exempting highway and transit projects from the Davis-Bacon Act to lower construction costs. The study also recommended abolishing the Harbor Maintenance Tax, among others, and instead create user charges to be paid directly to the operator of each facility.

About Matthew Kabik

Matthew Kabik is the former Editor of Computer Aid's Accelerating IT Success. He worked at Computer Aid, Inc. from 2008 to 2014 in the Harrisburg offices, where he was a copywriter, swordsman, social media consultant, and trainer before moving into editorial.

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