Funding, traffic roadblocks hit industry sectors

The goal of the transportation industry for 2009 is to get through a convergence of obstacles: less funding, slower movement of goods and fewer travelers.

While the state's transportation industry is counting on a federal lifeline, the shipping and air-travel industries don't have a federal stimulus to rely on in 2009.

By road

Missouri Department of Transportation faces an impending funding crunch with pressure coming from multiple angles.

MoDOT must begin making payments this summer on the $2 billion in bonds it issued as a result of Amendment 3, and state gas-tax receipts continue to decline as drivers cut back on fuel consumption in response to the recession.

But the threat of MoDOT reverting to "maintenance-only mode" and of funding "falling off a cliff" may have been averted, at least momentarily. The American Recovery and Reinvestment Act, signed into law Feb. 17, is expected to create an estimated 14,000 infrastructure construction jobs in Missouri by providing $637 million in funding for road and bridge projects statewide.

Among the local work included in the funding is an $8.7 million project to add an intermittent passing lane on U.S. Highway 60 between Monett and Republic; work on that project began the same day President Barack Obama signed the federal stimulus bill.

Other projects on the docket include widening U.S. Highway 65 to six lanes between Interstate 44 and Highway 60 in Springfield and the long-anticipated rebuilding of the interchange at highways 60 and 65.

"There are a couple of hundred million dollars worth of projects happening or in the pipeline to happen (in southwest Missouri)," said Jim Anderson, president of the Springfield Area Chamber of Commerce and vice chairman of the Missouri Highways and Transportation Commission. "It will create inconvenience and some challenges for travelers, but when all this is done, what a great improvement we'll see in our infrastructure."

Anderson doesn't anticipate the state legislature proposing any new funding ideas in 2009.

"Hopefully in the next couple of years, we'll get back to a point where it makes more sense to look at road-funding measures," Anderson said. "Now is not the time to be asking for more money."

Moving goods

While roads have received a much-needed boost, trucking companies across the state that travel those roads are at their lowest point in recent memory.

Tom Crawford, president and CEO of the Missouri Motor Carriers Association, said that local anecdotal evidence from his organization's 700 members show total freight being shipped in Missouri is down about 25 percent.

Mike Walker, president of TCSI/Transland and a former chairman of MMCA, said he and other truck industry owners are trying to stay optimistic in "the most difficult environment I've witnessed in my 26-year career."

"Not only is (less freight) a problem, we have tremendous deflationary pressures on our prices and services" due to the increased competition for the remaining freight, Walker said. "I'm calling it a new-era depression in trucking; there's just not enough business out there to support a lot of our overhead."

The lone bright spot in freight may be refrigerated foods; MMCA's Crawford said refrigerated freight was down only 7 percent in 2008, compared to drops of 20 percent or more in other sectors.

"But when being down 7 percent is your bright spot, you know it's pretty difficult time," Crawford said.

Walker noted that numerous trucking companies filed for bankruptcy or went out of business in 2008, and he expects the trend to continue because many businesses won't be able to borrow the additional capital needed in lean shipping periods.

"2009 will be the most difficult trucking environment we've seen in 30 years," he said.

Dire economic expectations and industry consolidation led to the April 2008 sale of 103-year-old, Springfield-based Banta Foods to Wisconsin-based Reinhart FoodService LLC.

Taking flight

Air travel also is down, but major airport developments in Springfield and Branson could help offset the decline.

At the Springfield-Branson National Airport, 2008 closed with 390,626 enplanements, compared to 441,347 in 2007.

Airport spokesman Kent Boyd said that there is no real industry consensus on whether passenger numbers will rebound in 2009; Springfield travel numbers dropped 11 percent in 2008 compared to the year before.

"The question is, how deep is the recession, and when will we pull out of it?" Boyd said. "The recession affects discretionary income, which affects (leisure) travel. It affects businesspeople, who cut back on travel expenses, and it has had the effect of driving our fare structure up across the board."

The exception is Allegiant Air, which posted 13 percent growth in Springfield. The local market was strong enough for the company to add Los Angeles as a fifth destination beginning May 3.

Boyd also hopes to get a boost in traveler numbers from the opening of the $119 million midfield terminal on May 6. He said he hopes the combination of convenience and the latest amenities will convince area travelers not to drive to airports in larger markets.

Two of the four dining options - revealed in February - are McAlister's Deli and Gevalia Coffee Bar, with plans for an additional beverage bar and branded restaurant.