Testimony of Richard T. Anderson, President New York Building Congress before The Port Authority of New York and New Jersey on Proposed Trans-Hudson Toll & Fare Increases

January 16, 2001

The New York Building Congress welcomes this opportunity to comment on the Port Authority's proposed Trans-Hudson toll and fare increases. This proposal is exceptionally important to the metropolitan region, both to support an ambitious and necessary Port Authority Capital Program and to expand the concept of variable pricing.

There are two undeniable realities facing the regional transportation system. First, the New York area is experiencing unprecedented economic growth, and the need for transportation investment to address congestion and outdated facilities is enormous. Second, the overall transportation system is not being expanded, and dramatic steps must be taken to make more efficient use of the existing system, especially during peak hours.

The Port Authority's proposed fare and toll increases in support of a $14 billion Capital Program directly address these realities. Capital spending is proposed at record levels for aviation, port improvements, and Trans-Hudson facilities. Never has it been more needed. Traffic growth at Port Authority facilities has grown 20 percent over the past five years, and modernization is urgently required in many areas. The planned $3 billion to support modernization of the region's airports, almost $2 billion for deep-water port improvements, and more than $1 billion for the PATH system are long overdue.

The most far-reaching aspect of the Port Authority proposal is its extensive use of variable pricing. It departs from traditional toll policy as simple revenue collection to promote congestion relief, environmental improvement, and greater use of public transportation. The use of price differences to ration scarce capacity is innovative and paves the way for enormous improvement in overall transportation efficiency. This region must spread transportation demand over the entire 24-hour day. We have no choice. If the economy is to continue to grow and prosper, we must spread travel demand by time and location.

As a coalition of the design, construction and real estate industry of New York City, the Building Congress is well acquainted with the regional transportation system. Our membership knows the Port Authority has played an enormously important role in the region's progress over the past 80 years, and its current proposal offers the twin benefits of major capital investment and introduction of widespread use of variable pricing for transportation. The Building Congress is pleased to endorse this initiative and to encourage the region's public and private leadership to urge prompt implementation by the Port Authority.

In closing, the Building Congress wishes to emphasize the importance of transportation investment to the New York region's future. The Port Authority has provided an ambitious and commendable five-year Capital Program. We urge the Governors of New Jersey and New York to support this program and to join together in announcing their enthusiasm for collective action in support of the region's economy. Without aggressive implementation, the metropolitan region inevitably will lag behind our global competition. There is no greater urgency than bi-state capital investment in support of the metropolitan economy. All of us should embrace the Port Authority's initiative and help extend its innovative aspects to all transportation programs in the New York area.