Transport infrastructure plan

Document Type:Thesis

Subject Area:Business

Document 1

If authorized, the plan would be able to reduce inefficiencies in delivery, maintenance, and operation of the transportation sector. Introduction The recent White House economic stimulus plan for transportation was contained in a $1. 5 trillion package for infrastructural development. The package was focused on funding from state and local governments and public-private partnerships. Specifically, the proposal, released by The White House in February 2018, suggested a $200 billion federal funding tied with private investment to spur the $1. Local and state government officials were indeed disenchanted since they did not expect that the plan would require funding from them, as opposed to the federal sources. In fact, state and local governments had been hoping for a gigantic federal aid program, only to be surprised by the proposal that would require them to spend more.

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Some analysts estimated that the federal infusion of $200 billion would not even yield $200 billion in form of new investment since the local and state governments might choose to spend their money in other existing programs (Tausche, 2019). Such a move by the state officials would mean that public-private partnerships have to put more and more funds to meet the proposed $1 trillion, which was reasonable anyway. In the most recent white house proposal for infrastructural development, the administration wants local and state governments to fund a large portion of the developments. The lawmakers have been reluctant to raise taxes on gasoline; hence, it has been hard to keep the plan solvent (Knopman et al, 2018). The idea behind making the local and state governments pay for most of their transport infrastructural developments would make the funding more sustainable.

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Many other nations have realized success through public-private partnerships, including Britain, Canada, and Australia (Knopman et al, 2018). However, such partnerships are not always simple to work out. One of the barriers to replication of such model in the U. C, has made congestion-based charges hit $47. 25 in rush hours. Nonetheless, the average speed on this highway has not improved that much. In addition, a public-private partnership toll road at Austin, Texas, constructed to reduce congestion on the city’s Interstate 35, has yielded as little as a third of what was projected. The proposal also contains a policy to slacken off restrictions on commercialization the rest areas along highways as well as the tolling of the interstate highways. A report showed that constructing a subway line would cost over five times more in New York than it would cost in Paris.

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In addition, New York City suggests that the cost of its major infrastructural projects could reduce by an average of 6% if the state changed its procurement laws and allowed the city to use design-build (Li et al, 2019). Design-build is an increasingly common practice that can save considerable amount of money and time through merging the design of a project with the construction process. The main aim behind this is the reduction of inefficiencies in development of transport infrastructure and the Trump’s plan supports that. Conclusion The recent white house economic stimulus plan for transport infrastructural development reflects increasingly mainstream policies that are geared towards encouraging public-private partnerships. Herbert, J. , McCrisken, T. , & Wroe, A. Trump in the White House. In The Ordinary Presidency of Donald J.

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