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August 4, 2005
Summertime, and the Megaprojects Are Easy (On the Eyes); Innovative Insights In SAFE-TEA LU
Two major projects
that Ive written cover stories on opened in July. Unfortunately
we didnt have enough space in the magazine to do them
justice. One is a signature cable-stayed bridge in South Carolina,
and the other is a sparkling new airport terminal in Dallas.
If variety is the spice of life, then covering the transportation
beat is like tabasco, wasabi and Massaman curry washed down
my gullet with a gulp of cider, Guinness and a shot of Jamesons
all at once.
Raves for Ravenel
The Arthur Ravenel Jr. Bridge, aka Cooper River Bridge, opened
a year ahead of schedule and within budget. Bobby Clair, South
Carolina Dept. of Transportation project director,says that
engineers from the far reaches of the globe as well as from
the DOTsnext door have come to take a gander at the $640-million
structure, with its two diamond-shaped pylons, 128 Freyssinet-supplied
cables and North American-record-breaking main span length
of 472 meters. The structure is strong enough to stand up
to a hurricane, and made to survivean earthquake.The bridge
is named for a Charleston native who is a retired general
contractor and served as a republican member of congress from
1987 to 1995.
Knowing that many industry folks
will be interested to know how Palmetto Bridge Constructors
completed a $530-million design-build contract a year early,
the SCDOT plans to put out a manual of lessons learned. "The
coordination involved was fascinating," says Justin Davis,
SCDOT associate engineer. "The amount of materials, the
tight schedule, and on an even broader scale, the coordination."
In addition to quarterly sessions with the prime contractor,
owner and "anybody else at the time who need to be involved,"
smaller meetings were held with the participation of mid-level
officials, from field inspectors to associate engineers, he
says. Everything from the next concrete pour, to the bankruptcy
of a steel supplier, to the next RFP and to the coordination
of concrete deliveries via the Port of Charleston was discussed
in advance. "Everything from right-now problems, to could-be
problems, to whats going right," Davis says.
Clair says that the states
on-the-job training program for disadvantaged local residents
results in 82 trained people who graduated eventually to journeyman
levels and continued working on the bridge. The program had
a 60% retention rate.
One fatality marred the project.
"A man unhooked his safety lanyard and walked down a
girder, slipped and fell and drowned," says Clair.
J. Cashman and Testa Corp. are
beginning a $59.9-million demolition of the two obsolete steel
bridges that no longer serve Highway 17 between Charleston
and Mt. Pleasant. The new bridge will surely make 70,000 daily
vehicles worth of commuting a mountains worth
more pleasant, while allowing bigger ships to sail in and
out of Charlestons burgeoning port.
Tremendous Terminal In Texas
The recently opened Skylink, possibly the worlds longest
on-airport people mover system, now has a new terminal to
serve. Its so big, there are two people mover stations.
With a Texas-sizedflourish, Dallas-Fort Worth International
Airport unveiled the world's largest post-9/11 airport expansion
on July 23, with the debut of the 2 million-sq-ft International
Terminal D.
The $1.2-billion international
terminal features soaring 80-ft ceilings and a plethora of
public exhibits, including a sculpture garden Officials estimate
it (the terminal, not the sculpture garden) will create more
than 77,000 new jobs and $34 billion in new economic activity
over the next 15 years. It will house all DFW international
flight operations to 38 destinations. DFW is set to serve
5.6 million passengers overall this year.
"This was a project of monumental
proportions," says Clay Paslay, executive vice president
for airport development. "More than 500 companies and
12,000 people from around the world worked more than 10 million
man-hours to complete this terminal. And our safety record
was unprecedented for a project of this size. We did it all
with minimal injuries and no deaths. That's the most monumental
statistic of all."
SAFETEA-LU and what it means to whom? To
you
Karen Hedlund, Arlington, Va.-based partner with Nossaman
Guthner Knox Elliott LLP, has probably almost memorized whole
sections of the multi-thousand-page document containing the
new provisions for innovative financing in the $286-billion
new highway/transit bill. Her firm has been involved with
just about every innovative megaproject in the country, from
the groundbreaking Interstate 15 design-build project in Utah
to the forthcoming Trans-Texas Corridor. Anticipated amendments
and revisions to the bill notwithstanding, Hedlund offered
a specific and in-depth peek into the specific programs and
changes that will boost innovative and alternative contracting
and financing.
- "One of the things well see is increased investment
by the private sector in highway and intermodal projects as
a result of the new private activity bond provisions in the
act,"she says. For example, up to $15 billion worth of
tax-exempt bonds will be available for private equity investment
in major projects. "The private activity bond provision
essentially levels the playing field between private and public
investments in infrastructure," Hedlund says. "The
private sector had been disadvantaged [previously] vis a vis
government project ownership and operation because it could
not take advantage of the lower-cost debt that was available
to governmental projects."
Hedlund does caution contractors
that only projects that are also receiving federal funding
are eligible for the private activity bonds. "That means
these projects, to the extent that they use federal funds,
will be subject to federal requirements such as Buy America
and the prevailing wage," Hedlund says.
The ability to use tax-exempt bonds
for private investment also extends to freight-related and
intermodal projects, which had not been eligible for this
kind of funding previously.
- Design-build flexibilityand in turn, ability to speed
up projectsincreases, thanks to SAFETEA-LU, notes Hedlund.
Projects no longer have to cost at least $50 million to be
delivered through design-build without special approvals.
Moreover, agencies no longer have to wait until after environmental
approvals are finalized in order to issue RFPs or enter into
design-build contracts. "If you wait until after a Record
of Deicsion to solicit proposals, you often end up with new
good ideas from the design-build team that requires going
back and redoing the NEPA approval process," notes Hedlund.
- The bill also provides for protection from eleventh-hour
lawsuits that in the past has held up projects, as in the
case of the San Joaquin toll road. There is now a new 180-day
statute of limitations for claims seeking judicial review
of federal project approval. "What this will do is reduce
major risk associated with developing transportation projects,"
says Hedlund. Potential litigators who want to challenge the
validity of the environmental process will no longer be able
to file lawsuits against a project thats ready to receive
a Notice to Proceed.
- Public freight rail and intermodal freight projects will
now be eligible for Transportation Infrastructure Finance
and Innovation Act loans. Also whereas previously only a handful
of states could use federal allotments to beef up their State
Infrastructure Banks, now all 50 states can do so.
Comments
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Takeoffs
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Aileen Cho, Editor
Aileen is ENR's senior transportation editor.
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