Thank you, Dick, for that introduction.
It's an honor to be here today-and to be part of such a distinguished group.
It's gratifying to see our state so successful in the global marketplace.
But this isn't surprising.
Our products, our labor force and our infrastructure make North Carolina highly competitive in this expanding arena.
We are fortunate to have such a strong infrastructure-and at its heart is our TRANSPORTATION NETWORK.
This network, which includes highways, aviation, rail, ferries, public transportation, bicycle routes and pedestrian walkways, has played an integral role in our state's prosperity.
The movement of people and freight is essential to commerce.
Movement is also essential to education, quality of life and . . . freedom.
My goal is to help Governor Easley fulfill his vision for One North Carolina by linking all of North Carolina with quality transportation.
For the last nine months I have been working on a VIGOROUS AGENDA in support of this effort.
Everyone here has been provided with a copy of my AGENDA CARD, which outlines the department's nine goals and commitments.
This agenda is good news for everyone-which means that it is good news for companies in the business of moving freight.
Freight movement in North Carolina depends on several modes-highways, rail, water and aviation.
Let's start with highways.
Truck transportation is vital to industry-trucks deliver 91% of all manufactured freight transported in North Carolina.
Eighty-six percent of North Carolina's communities are served exclusively by trucks, delivering food, materials and medical supplies.
On a daily basis, trucks move an average of more than 706,000 tons of inbound freight and more than 768,000 tons of outbound freight.
Such movement would be impossible without a reliable and interconnected highway system.
During the last 50 years, this department invested great effort in road building, earning the name of "THE GOOD ROADS STATE."
Through the years, we have steadily improved these roads and they have developed into the nation's second-largest state-maintained highway system.
We are continuing to improve them to meet the needs of our growing population by increasing capacity.
Major improvement projects include:
Interstate 40. · We're currently widening three miles of Interstate 40 to eight lanes from the Durham Freeway to the I-540 interchange in Durham County. We expect to complete this project in the middle of 2003.
Interstate 77. · As one of the state's three design-build projects, we're widening 2 miles of I-77 to eight lanes from I-85 (Exit 13) to future I-485 in Mecklenburg County. · This project will be let in November 2001. Because design-build projects are awarded to a single contractor, work moves much faster than traditional construction jobs. We expect construction to be complete on this project by December 2003.
Interstate 85. · We're widening 2.5 miles of I-85 to eight lanes from west of Broad Street to east of Avondale Drive in Durham County. This project is under construction and the expected completion date is early 2005.
Interstate 95. We're rehabilitating 8 miles of Interstate 95 in Wilson County. This project is under construction and we expect it to be completed in the middle of 2003.
Interstate 26. · The extension of Interstate 26 in Madison County will tie western North Carolina to Johnson City, Tennessee and beyond, greatly increasing the potential for economic development. · Currently we're working on two grading projects through the rugged mountain terrain between Mars Hill and the Tennessee state line at Sam's Gap, a total length of 9 miles. Both grading projects are nearly complete and should be finished any day now. Recently we let a paving contract on this project from the Tennessee state line to Mars Hill. We expect this work to be underway very shortly, with completion in July 2003.
I know many of you are also interested in the improvements along I- 74/U.S. 74 between Wilmington and Charlotte. We're currently working on two bypasses that will help traffic move smoother along this route-the Maxton Bypass in Robeson County and the Monroe Bypass in Union County. We expect to start construction on the Maxton Bypass in 2004 and on the Monroe Bypass in 2002.
We also have a number of bypasses in the works that will improve travel between Raleigh and Morehead City along U.S. 70. Construction on the Clayton and Havelock bypasses will start in 2004 and construction on the Goldsboro Bypass will start in 2007.
As we improve and expand our road system, it's essential that we take proper care of the roads that we build.
That's why one of my chief goals has been to ELIMINATE THE HIGHWAY MAINTENANCE BACKLOG.
Our state's budget shortfall makes meeting our maintenance needs particularly challenging.
However, we're doing all we can to optimize our funding through internal efficiencies.
We've also been working with the General Assembly.
Last month, the General Assembly passed landmark legislation that would enable the department to move about $420 million from our cash balances to use for maintenance.
We're very excited about this legislation-which is the most significant legislation passed since the Highway Trust Fund in 1989-and I'm pleased to tell you that we are moving ahead as soon as possible with much needed maintenance projects-from the mountains to the coast.
In November and December of this year, the Board of Transportation is scheduled to approve projects totaling $153 million.
Construction on these projects, which will improve 400 miles of highway, will begin as soon as weather permits.
Here are a few of the highlights: · We'll improve more than 50 miles of U.S. 74, including 10 miles in Union County to the Mecklenburg County line. · We'll improve 56 miles of U.S. 70-including a 30-mile project in Lenoir, Jones and Craven counties. · We'll improve 35 miles of U.S. 64, including a 6-mile project from the Neuse River to the U.S. 64 Bypass in Wake County And we'll be rehabilitating the intersection of Interstate 85/U.S. 29 in Davidson County
Because there are two more years left in the program-$135 million in both the second and third years-many more areas will also benefit from these funds.
More maintenance funding is only part of the solution; unless we REDUCE CONGESTION, our highways will only continue to deteriorate.
Although trucks move the majority of the state's goods, medium and large trucks account for less than 4 percent of all vehicles.
That tells us that the rapidly growing number of personal vehicles accounts for the majority of traffic on our highways.
Our urban areas in particular are choking with increased traffic volumes.
In June, we announced measures to improve traffic flow along I-40 in the Triangle and I-77 in Charlotte-two of the most congested highways in the state.
In the Triangle, we determined that HOV lanes would not work for I-40 at this time; however, we are taking other steps, including the construction of a temporary connector road from I-540 to Slater Road to provide relief until I-540 is extended to N.C. 55.
In Charlotte, we're currently examining the feasibility of an HOV lane along I-77, which will help ease congestion by increasing capacity.
Another way that we're reducing congestion is through new technologies.
Technology helps us maximize our highways and IMPROVE EFFICIENCY, which is another one of my goals.
My favorite example of new technology is Intelligent Transportation Systems (or ITS). ITS is the application of technology to transportation.
The simplest form of ITS is the traffic signal.
North Carolina currently has over 7500 traffic signals and continues to be a national leader in the use of signal systems, which allow for coordinated traffic progression.
In recent years the department has installed more than 125 traffic cameras, 60 variable message signs, and 15 highway advisory radios to keep motorists across the state informed about travel delays and to provide information on alternate routes.
We manage these systems from four regional transportation management centers across the state.
Our newest and most advanced Transportation Management Center is now operational in the Charlotte area.
From this center, NCDOT works with law enforcement and emergency response agencies, as well as our own Incident Management Assistance Patrol (or IMAP), in a coordinated effort to help traffic move as smoothly as possible.
North Carolina is also embarking on its first "Smart Work Zone" projects along I-95 and I-40.
Along these zones, technology will be used to automatically detect and provide real time traveler information via Variable Message Signs.
These devices will give travelers current travel time through a work zone and advise them of times when it would be best to use an alternate route based on the delay.
Another new ITS initiative is the Commercial Vehicle Information Sharing Network, a program that will allow safe trucks in our state to bypass weigh stations, thereby reducing delays and costs of getting goods to market.
A project is underway to install this upgraded technology at the Hillsborough weight station along Interstate 40/85.
This project is part of a larger data collection project that will ultimately allow trucks to fill their registrations electronically at one location.
This will also make fee collection more equitable by making sure that no trucks evade the collection process.
In support of our ITS initiatives this year, the General Assembly passed legislation this year that would provide $45 million during the next 3 years to construct and install high-end technologies such as closed loop traffic signal systems, vehicle detection technology and incident management systems.
An example of how these funds will be used is our "Reach the Beach" system along U.S. 70.
This system will include about 40 total signalized intersections and 5 closed loop signal systems between Raleigh and Morehead City.
These loops are interconnected traffic signals controlled by a master signal controller and will be in Clayton, Goldsboro, Kinston, Havelock and Newport.
Work will begin on this project in early spring 2002.
This system will allow traffic to move more efficiently through this corridor-improving congestion for motorists and trucks traveling to the coast. Our highways are important, however, it's very clear that these roads cannot handle the burden of increasing traffic alone-particularly over the long term.
We can only add so many more lanes of highway-and we are reaching our maximum.
Although fuel prices have decreased lately, they remain volatile so it's very important that we take advantage of more energy-efficient means to move both people and freight.
Air quality is also a concern, for our sake as well as that of our children.
For all of these reasons, we must aggressively continue to EXPAND OUR STATE'S RAIL SYSTEM, which is another key goal.
And we have made much progress.
As you may know, earlier this year we announced plans to reintroduce passenger rail to western and southeastern North Carolina.
We're very excited about the role of rail in our state's future-for passengers and freight.
Rail can handle high capacities; it's better for the environment; it's fast and it's efficient.
Because we're in a global economy, our products can reach more markets than ever before-and to stay competitive, we must be able to deliver these products as quickly as possible.
"Just-in-time" shipping means just that-and North Carolina can't afford to be late.
Railroads already provide a vital freight service, transporting a large and varied assortment of commodities. In fact, one in four of the state's top 200 manufacturers ship materials by rail.
Twenty-five freight railroad companies operate North Carolina's 3,379-mile rail system serving about 90 of the state's 100 counties.
The larger railroads transport freight long distances usually between cities or states.
CSX provides service to the Wilmington port, while Norfolk Southern serves the Morehead City port.
Shortlines also play a role in freight transportation by performing essential switching operations, hauling freight cars between the shipper and an interchange point with the larger carrier.
While shortlines operate in every geographic region of the state, they primarily serve rural counties and communities. The department has a number of rail initiatives that will help improve freight transportation.
The Rail Industrial Access Program encourages industrial development in remote areas by constructing or refurbishing rail spurs when an industry wants to relocate or expand.
NCDOT provides grants as an incentive for new companies to locate or expand in North Carolina versus out of state.
More than 45 companies have received funds through the Rail Industrial Access Program since it began.
They have invested a total of nearly $900 million to develop and expand new plants; created more than 5,600 new jobs in 36 communities and built nearly 19 new miles of railroad with a state investment of $4 million.
The extra 29,000 rail carloads shipped during the past six years translates into more than 116,000 truckloads of materials that otherwise would have been transported by highway.
As an ongoing effort, NCDOT works with host railroads to maximize efficiency for both freight and passenger trains that operate in the state.
Because any improvements that benefit freight rail service also will improve passenger service, our Rail Division is working with the North Carolina Railroad and Norfolk Southern to improve the busy Raleigh to Charlotte rail corridor to reduce travel time for both freight and passenger trains.
The future for rail is very bright in North Carolina.
By 2003, we plan to invest $400 million to improve the North Carolina Railroad corridor by adding passing sidings between Raleigh and Greensboro.
"Passing sidings" are parallel tracks that allow one train to pull over while a train coming from the opposite direction passes.
We'll also be adding double tracks between Greensboro and Charlotte, installing a train traffic control system, super-elevating some portions of track and straightening several curves.
Another important travel mode for freight is aviation.
Our state's three largest airports-Charlotte-Douglas, Raleigh-Durham and the Piedmont Triad international airports-move more than 90% of North Carolina's air cargo.
RDU experienced a 10% increase in air cargo last year and is the fastest growing location for air cargo traffic.
The Piedmont Triad Airport in particular is headed for rapid growth, especially when the new Federal Express Hub is established-which is expected to bring investment of $7.5 billion and create 16,000 jobs in the Triad region by 2019.
In support of this new facility, NCDOT has programmed about $38 million for road improvements associated with a new runway.
In addition, we're building the Greensboro Loop, which will improve access to the airport from Interstate 40. The southeastern part is under construction right now and the western part will be under construction in 2002.
We're also continuing our commitment to the Global Transpark.
In the beginning, the Global Transpark was planned as a high-tech distribution center; however, I believe that the Global Transpark has the potential to serve as a true economic development catalyst for southeastern North Carolina and beyond.
Our state has made major investments in the Global Transpark-and as requested by the General Assembly, the department's Aviation Division will be studying the Global Transpark and its role in our state's future.
Along with the Department of Commerce, we're also working on a number of economic development initiatives that will help the Global Transpark.
In conjunction with Wayne, Lenoir and Craven Community Colleges, we're looking at a proposal to use the Global Transpark as a training facility for Fortune 500 aircraft mechanics
The Aviation Division has also embarked on a study of air carrier service in North Carolina to give us more insights on how to improve marketability for air service at this facility and other small airports. We will continue to work with airports across the state as funds are available through our State-Aid to Airports Program.
Last year we provided $500,000 to airports throughout the state for improvements to runways, taxiways and terminals.
In this world of increasing technologies and innovations, we must make sure that we don't overlook one of our state's greatest natural gifts-water.
North Carolina's intricate system of rivers and waterways was our state's first highway system-and it continues to serve as a viable and cost-efficient means of travel in North Carolina, particularly for freight.
The Intracoastal Waterway (ICW), which runs from Boston to Key West along the eastern seaboard, is very important in transporting freight by barge in our state.
NCDOT is improving barge traffic by replacing swingspan and drawbridges with new bridges at least 65-75 feet high. Recent examples of high-rise bridges include the Neuse River Bridge in New Bern and the Chowan River Bridge in Edenton.
In partnership with the North Carolina State Ports Authority, NCDOT is also working to improve access to our deep-water ports in Wilmington and Morehead City. As we progress with our plans to reintroduce passenger rail to the southeastern part of our state, we will also work with freight railroads and the state ports to ensure that these improvements also benefit the ports.
In the end, all modes of freight are interconnected.
Moving freight by barge, for example, would be meaningless without strong rail or highway connections in place to move the freight to the consumer.
As the lead transportation agency, we have a responsibility for linking the components of freight movement together.
There is only one way to do this and that's through efficient planning.
As part of my goal to improve efficiency, I'm committed to PROACTIVE PLANNING AND CREATIVE THINKING.
To ensure that we meet the needs of freight transportation in the future, we're conducting a study of the commodities that flow through the state to identify the needs of-and impacts to-the freight industry as part of the statewide transportation plan.
The N.C. State Ports Authority is just one of our partners in this effort.
The issues examined in this study include: destinations of outbound freight shipments, origins of inbound shipments, intrastate shipments and modes of shipping.
This study should be completed in 2002 and will help us plan for freight transportation in the future.
Another important issue affecting freight in North Carolina is the growing Latin American market.
North Carolina is part of a fourteen-state alliance that recently commissioned a study of Latin American trade trends and transportation.
This alliance is made up of states in the southeastern United States, all of which have an interest in Latin American trade.
The study, which is sponsored by FHWA, was released in March of this year and concluded that the fourteen-state alliance is uniquely positioned to take advantage of this growing market by serving as a "gateway" for shipments.
The study examined existing transportation infrastructure and created a strategic transportation plan to connect to Latin America.
This plan also identified future transportation needs for meeting the demands of this market.
Our state's ports, interstates, rail systems and six of our airports are included in this plan.
The next stage of this project is expected to include an examination of individual state needs and funding plans.
We continue to be very interested in this growing market and because our state is part of this alliance, North Carolina will be in an excellent position to capitalize on this trade.
We'll update you on our efforts as developments occur.
Effective freight transportation is critical to our state's continuing prosperity.
Our state not only produces excellent goods, we are a convenient and efficient gateway for goods produced in other states-and other nations.
As the Secretary of Transportation, I am committed to helping freight move efficiently through our state.
I've shared with you highlights from my agenda for improving transportation in North Carolina.
We have made much progress but I'm far from satisfied-we have much more to accomplish.
For the future, we must continue to find ways to maximize our existing highways-through maintenance and new technologies.
We also must find ways to use new technologies to improve all modes of travel.
These technologies are out there, we need to identify new applications and put them in place.
We must continue to improve access to our ports and above all else, we must continue to expand rail transportation.
It's also important that I hear from leaders like you.
Your ideas and concerns are invaluable to me and I know that you are as excited about transportation as I am.
Transportation is fascinating because it's about ACCESS; it's about MOVEMENT and it's about OPPORTUNITY.
And it's as much about the MOVEMENT OF IDEAS as it is the movement of people and freight.
Let's keep those ideas moving.
Let's continue to work together to fulfill the goals on this agenda card.
Make this agenda YOUR AGENDA AND HELP ME MOVE NORTH CAROLINA FORWARD.
Together we can build the kind of transportation system that strengthens our state and makes One North Carolina a reality.
Thank you for inviting me to join you today.