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Archive Dec. 27, 2007 Lafarge buys OrascomLafarge has acquired Orascom Cement, a
major cement producer in the Middle East, for € 8.8 billion
(US$ 12.9 billion). Lafarge will also assume € 1.4 billion
(US$ 2.1 billion) of debt, for a total price tag of € 10.2
billion (US$ 15 billion). (Source: International Construction) Dec. 21, 2007 Boston’s $14.8 Billion Big Dig Finally CompleteWhen the clock runs out on 2007, Boston will quietly mark the end of one of the most tumultuous eras in the city’s history: The Big Dig, the nation’s most complex and costliest highway project, will officially come to an end. Don’t expect any champagne toasts. After a history marked by engineering triumphs, tunnels leaks, epic traffic jams, last year’s death of a motorist crushed by falling concrete panels and a price tag that soared from $2.6 billion to a staggering $14.8 billion, there’s little appetite for celebration. Civil and criminal cases stemming from the July 2006 tunnel ceiling collapse continue, though on Monday the family of Milena Del Valle announced a $6 million settlement with Powers Fasteners, the company that manufactured the epoxy blamed by investigators for the accident. Lawsuits are pending against other Big Dig contractors, and Powers Fasteners still faces a manslaughter indictment. Officially, Dec. 31 marks the end of the joint venture that teamed mega-project contractor Bechtel/Parsons Brinckerhoff with the Massachusetts Turnpike Authority to build the dizzying array of underground highways, bridges, ramps and a new tunnel under Boston Harbor — all while the city remained open for business. The project was so complex it’s been likened to performing open-heart surgery on a patient while the patient is wide awake. Some didn’t know if they’d live to see it end. Enza Merola had a front row seat on the Big Dig from the front window of her pastry shop — stacked neatly with tiramisu, sfogliatelle and brightly colored Italian cookies — in Boston’s North End. During the toughest days of the project, the facade of Marie’s Pastry Shop, named after her sister, was obscured from view. The only way customers could find the front door was along a treacherous path through heavy construction. “For a while we thought we weren’t going to make it,” Merola said. “But you know, we hung in there.” The Central Artery/Third Harbor Tunnel Project — as the Big Dig is officially known — has its roots in the construction of the hulking 1950’s era elevated Central Artery that cut a swath through the center of Boston, lopping off the waterfront from downtown and casting a shadow over some of the city’s oldest neighborhoods. Almost as soon as the ribbon was cut on the elevated highway in 1959, many were already wishing it away. One was Frederick Salvucci, a city kid for whom the demolition of the old Central Artery became a lifelong quest. “It was always a beautiful city, but it had this ugly scar through it,” said Salvucci, state transportation secretary during the project’s planning stages. Rather than build a new elevated highway, Salvucci and others pushed a far more radical solution — burying it. Easier said than done. Those who built the Big Dig would have to undertake the massive highway project in the cramped confines of Boston’s narrow, winding streets, some dating to pre-Colonial days. Of all the project’s Rubik’s Cube-like engineering challenges, none was more daunting than the first — how to build a wider tunnel directly underneath a narrower existing elevated highway while preventing the overhead highway from collapsing. To solve the problem, engineers created horizontal braces as wide as the new tunnel, then cut away the elevated highway’s original metal struts and gently lowered them onto the braces — even as cars crawled along overhead, their drivers oblivious to the work below. It was the just one of what would be referred to as the Big Dig’s “engineering marvels.” The Big Dig’s long history is also littered with wrong turns — some unavoidable, others self-inflicted. One of the biggest occurred in 2004 when water started pouring through a wall of the recently opened I-93 tunnel under downtown Boston. An investigation found the leak was caused by the failure to clear debris that became caught in the concrete in the wall during construction. Hundreds of smaller drips, most near the ceiling, were also found. Some delays were unrelated to construction. The Leonard P. Zakim Bunker Hill Bridge — the project’s signature element — went through dozens of revisions as designers labored to come up with the most practical and elegant way to cross the Charles River. But the project’s darkest day came near the end of construction in 2006 when suspended concrete ceiling panels in a tunnel leading to Logan Airport collapsed, crushing a car and killing Del Valle, 39, a passenger in the vehicle driven by her husband. The tunnel was shut down for months as each of the remaining panels was inspected and a new fastening system installed. A federal investigation blamed the use of the wrong kind of epoxy and the Massachusetts attorney general indicted the epoxy manufacturer. Four workers also were killed working on the project. During peak construction, more than 5,000 workers labored daily on the project. The project’s escalating budget also became an unwanted part of its legacy. In 2000, former Big Dig head James Kerasiotes resigned after failing to disclose $1.4 billion in overruns. A frustrated Congress capped the federal contribution. “It never should have taken so long. It never should have been so expensive,” said former Gov. Michael Dukakis, who left office just as major construction was to begin. For those who grew up with the noise and clutter of the old Central Artery, the transformation of downtown Boston is still a wonder to behold. The darkened parking lots under the old elevated highway have been replaced by parks, dubbed the Rose Kennedy Fitzgerald Greenway after the mother of Sen. Edward Kennedy, who grew up in the North End. Buildings that once turned their backs to the old Central Artery are finding ways to open their doors to the parkway. Mayor Thomas Menino, who presided over the city during most of the construction, said that for the first time in half a century, residents can walk from City Hall to the waterfront without trudging under a major highway. “When I came into office in 1993, people said your city isn’t going to survive,” he said. “Now we have a beautiful open space in the heart of the city. It knits the downtown with the waterfront. All those dire predictions by the experts didn’t come true.” Drivers also give the Big Dig a big thumbs up. A study by the Turnpike Authority found the Big Dig cut the average trip through Boston from 19.5 minutes to 2.8 minutes. “Before we drive bumper to bumper, but now they are moving very well,” said Gamal Ahmed, 38, who has been driving a cab in Boston for seven years. “Sometimes we are stuck, but not like before.” For Salvucci, who warns gridlock could soon return without a major commitment to public transportation, the Big Dig — for all its whiz-bang engineering — was always second to the city itself. “The Big Dig is not a highway with an incidental city adjacent to it. It is a living city that happens to have some major highway infrastructure within it and that highway infrastructure had to be rebuilt,” he said. “This was not elective surgery. It had to be done.” (Source: Associated Press (AP), Dec. 25, 207. By Steve LeBlanc, AP Writer. AP Writer Rodrique Ngowi contributed to this report.) Dec. 20, 2007 S-MINER Not Expected for Consideration This YearWith time growing short before the expected adjournment of Congress for the year, it is looking more and more likely that the House will not consider S-MINER. While industry continues to be vigilant, the list of items that Congress must deal with does not include this mine-safety legislation. However, the pending omnibus appropriations bill includes some coal-mining industry-specific safety requirements. Consideration by the House of S-MINER is likely in 2008 (Source: National Stone, Sand & Gravel Association eDigest & Washington Watch) Dec. 19, 2007 Senate Hearings on Wetlands Cut ShortThe Senate Environment and Public Works committee held a hearing Dec. 13 focusing on the Clean Water Act (CWA) following the recent Supreme Court decisions in the Solid Waste Agency of Northern Cook County (SWANCC) and Rapanos-Carabell cases. While the subject matter was purportedly about the jurisdictional issues surrounding the CWA, the witnesses quickly referred to the controversial legislation, which would remove the term “navigable” from the CWA and replace it with a lengthy definition of what would be considered “waters of the United States.” In a hearing notable for its brevity, approximately 30 minutes due to an expected vote in the Senate, no questions were asked of the witnesses, and few senators bothered to attend. Sen. Diane Feinstein (D-Calif.) announced the next series of hearings would deal with S. 1870, the Clean Water Restoration Act introduced by Sen. Russ Feingold (D-Wis.), which is the companion bill to Rep. Jim Oberstar's (D-Wis.) H.R. 2141. Three of the five witnesses supported the controversial legislation, and the remaining two opposed expanding the jurisdiction of the CWA. NSSGA submitted a statement to the committee opposing the underlying legislation and noted the way to improve the Section 404 program would be to classify wetlands based on value and function and to develop an incentive program for private landowners to conserve wetlands on their property. (Source: National Stone, Sand & Gravel Association eDigest & Washington Watch) Dec. 14, 2007 Vulcan Materials assigned ‘A-’ corporate credit rating - S&PMUMBAI—Standard & Poor’s Ratings Services said it has assigned its ‘A-’ corporate credit rating to the recently formed construction materials producer Vulcan Materials Co. Vulcan is the new parent holding company for Legacy Vulcan Corp and is also the parent of the unrated Florida Rock Industries Inc. The ratings agency also assigned its ‘A-’ rating to the $1.23 billion of senior unsecured debt issued by Vulcan on Dec 6. “Vulcan’s credit quality benefits from its strong competitive position in aggregates, favorable long-term outlook for publicly funded construction projects, moderate capital spending requirements, strong pricing fundamentals, and past conservative financial policies,” S&P said. (Source: Thomson Financial via AFX News Limited) Dec. 11, 2007 Colorado Quarry Proposal Worries OfficialsA rock quarry that would produce 1 million tons annually has been proposed near the intersection of Colorado 119 and U.S. 6 in Clear Creek Canyon. The Gilpin County Planning Commission and Clear Creek District Water Providers LLC, which would operate the MMRR Quarry, have discussed plans several times since August, but no decision has been made. Developers, who already have state mining board approval, have submitted a request for a special-use permit to operate the quarry, proposed for a site about a mile from Colorado 119 and U.S. 6 near the Bullwhacker’s gas station. Project manager Alex Schatz said the quarry would produce rock for high-strength concrete. The site is behind a ridge on 100 acres of a 530-acre parcel of land. The remaining land would be a buffer. “This is not a highly populated part of the county,” Schatz said. He said the 4-inch-thick county application includes information about how various issues such as environmental and traffic impacts would be handled. About 200 truck trips a day are envisioned, with most trucks operating during lower-traffic periods. Deceleration and acceleration lanes would be added in the area. Black Hawk officials have concerns about traffic impacts and oppose the quarry, “because from our perspective, how are they going to mitigate all of the trucks that will be added?” said town spokesman Corey Hoffman. The application does not address issues such as the number of trucks, sight distances and intersection spacing, Hoffman said, adding, "The city wants to make sure it's safe" for visitors, employees and residents. A public hearing on MMRR’s request for a special-use permit is planned for Jan. 12 at the Gilpin County Justice Center. (Source: The Denver Post, Dec. 9, 2007. By Ann Schrader, 303-278-3217 or aschrader@denverpost.com .) Dec. 10, 2007 CRH buys Cemex assets for $250 million
LONDON—Irish
building materials giant CRH has bought assets from Mexican
group Cemex located in Florida and Arizona for $250 million.
(Source: Sharecast, Dec. 3, 2007) Dec. 6, 2007 CEMEX completes sale of U.S. assets required by U.S. Department of JusticeMONTERREY, Mexico—CEMEX, S.A.B. de C.V. (NYSE: CX) announced on Nov. 30 that it has completed the sale of its operations in Arizona and Florida, as required by the U.S. Department of Justice in association with the Rinker Group Limited acquisition, to CRH plc, the Ireland-based international building materials group. CEMEX acquired Rinker in July 2007. As a condition of U.S. regulatory approval, the U.S. Department of Justice required CEMEX to sell 39 ready-mix concrete and aggregate facilities in Arizona and Florida. The value of the transaction is approximately US$250 million. CEMEX will use the proceeds from the sale of these assets to reduce debt. The Florida operations being divested comprise 26 ready-mix concrete plants and 6 block plants. The ready-mix concrete business operates in five market areas - Tampa, Southwest Florida, Orlando, Jacksonville and the Florida Panhandle - while the block business operates primarily in the Tampa/St. Petersburg and Fort Myers/Naples areas. In Arizona, the operations comprise two quarries and five ready-mix concrete locations, principally in the Tucson area. CEMEX and CRH terminated discussions relating to the potential sale of additional operations due to disagreement over the value of the assets. CEMEX announced on Nov. 13, 2007, that it is in negotiations with Ready Mix USA, a private ready-mix concrete company with operations in the Southeastern United States, to expand the scope of their ready-mix joint venture formed in July 2005. CEMEX intends to contribute assets valued at approximately $150 million to the joint venture and intends to sell additional assets to the joint venture for approximately $227 million in cash. As part of the transaction, Ready Mix USA intends to make a $150 million cash contribution to the joint venture. Ready Mix USA will manage all the newly acquired assets. Following the transaction, the joint venture will continue to be owned 50.01 percent by Ready Mix USA and 49.99 percent by CEMEX. Dec. 5, 2007 MDU Resources maintains “outperform” ratingAnalysts
at Robert W Baird maintain their “outperform” rating on MDU
Resources Group Inc. The target price is set to $35. MDU Resources Group has a track record of providing a conservative estimate and then exceeding that guidance, the analysts add. The company expects the growth in its E&P production business to offset the weakness in the aggregates business and flat earnings in the construction business going forward. (Source: Newratings.com, Dec. 4, 2007. By Robert W. Baird) Dec. 4, 2007 Oregon Producer Negotiates with Private Landowners, OfficialsDILLARD,
Ore.—Two months ago, the Bartons began blasting and digging
rock full time at their family-owned quarry on Willis Creek
Road, approved 10 years ago by Douglas County. Dec. 3, 2007 EPA Announces 2008 Renewable Fuels StandardThe U.S. Environmental Protection Agency (EPA) is setting a new renewable fuels standard (RFS) of 4.66 percent to meet the 2005 Energy Policy Act’s mandate that at least 5.4 billion gallons of renewable fuels be blended into transportation gasoline in 2008. Based on
the standard, each party determines the minimum volume of
renewable fuel that it must ensure is used in its motor
vehicle fuel. The standard for 2007 was 4.02 percent,
equating to roughly 4.7 billion gallons. The overall volume
target increases every year, reaching 7.5 billion gallons in
2012. The Energy Policy Act requires EPA to annually
determine the standard — which applies to refiners,
importers, and non-oxygenate blenders of gasoline — by Nov.
30 for the following year. Nov. 30, 2007 2008 Transportation Appropriations Facing Veto; Still To Be Voted on in SenateThe House passed the $50.9 billion House and Senate Transportation — Housing and Urban Development (THUD) Appropriations conference report (H.R. 3074) on Nov. 14 by a 270-147 vote, falling nine votes short of a veto-proof majority. In a “Statement of Administration Policy (SAP)” (click here for the SAP) issued that day, the administration reiterated its opposition to highway spending that “exacerbates the strained financial condition of the Highway Trust Fund.” The overall spending bill exceeded the administration’s request by about $3 billion. Senate attempts to pass the conference report prior to the Thanksgiving recess were unsuccessful due to Republican procedural motions. The overall price tag of the bill is $105.6 billion, which includes mandatory and discretionary (what Congress has a say over) spending; the latter totals $50.9 billion. H.R. 3074 funds the highway program at $40.2 billion — the amount called for by the SAFETEA-LU law, an extra $1 billion to fix faulty bridges, and the RABA funds were included, bringing total highway funds to $41.955 billion. Transit receives $9.6 billion, while the aviation system receives almost $15 billion divided among facilities and equipment ($2.5 billion), research, engineering, and development ($147 million), and the Airport Improvement Program ($3.515 billion). The conference agreement also jettisons the controversial requirement that the $3 billion rescission of contract authority be applied proportionally — potentially causing trouble to states that flex funds from one highway program account to another. In its place is only a prohibition from flexing funds out of the highway safety account. Prior to the recess, Democratic congressional leaders floated the idea of splitting the difference on spending levels with the administration by offering to cut the 11 remaining spending bills by $11 billion, leaving the total $11 billion more than the president’s budget request. The administration quickly rejected the offer. It is unclear how Democrats plan to pass the remaining spending bills. Past scenarios lead some to think a massive omnibus is in the making, but newly adopted Senate rules allow Republicans the opportunity to kill the scenario if the administration’s concerns are not addressed. Included in the mix is the transportation spending bill. (Source: National Stone, Sand & Gravel Association eDigest & Washington Watch) Nov. 30, 2007 Asbestos Bill Likely to Move in House in 2008The Senate passed S. 742,Sen. Patty Murray’s (D-Wash.) “Ban Asbestos in America Act of 2007,” on Oct. 4by unanimous consent. The National Stone, Sand & Gravel Association (NSSGA) had been working with a group of allied interests to ensure that the definition of asbestos included in the bill was accurate and that clarifying language was inserted into the report to accompany the bill. The bill was sent to the House, where it was held at the desk. Reportedly, Senate proponents of the legislation were pushing for expeditious House consideration of the Senate-passed bill. Meanwhile, Rep. Betty McCollum (D-Minn.) introduced the “Bruce Vento Ban Asbestos” and “Prevent Mesothelioma Act of 2007” (H.R. 3339), which is the companion to the Senate bill, although it does not pick up some of the changes made to the bill by the Senate Environment and Public Works Committee. NSSGA has met with majority and minority staff on the House Energy and Commerce Committee to discuss the legislation and how the chairman plans to proceed. A December hearing on the McCollum bill was rumored, but it now appears no action will be taken by the House on the legislation this year. NSSGA and its allied interests group support the asbestos ban legislation as passed by the Senate and will continue to work with the House committee as it begins discussions on the legislation. (Source: National Stone, Sand & Gravel Association’s eDigest & Washington Watch) Nov. 29, 2007 U.S. Department of Justice Rules Vulcan Must Sell Eight Operations; Antitrust Suit FiledThe U.S. Department of Justice has ruled that Vulcan Materials Co. must sell of the Florida Rock Six Mile Quarry in Georgia’s Floyd County. Birmingham, Ala.-based Vulcan completed its acquisition of Florida Rock, which has operations in Florida and Georgia, earlier this month. Antitrust laws are requiring that Vulcan must divest itself of eight quarries that produce coarse aggregate in Georgia, Tennessee, and Virginia. Vulcan plans to use asset swaps to the extent possible to satisfy DOJ requirements. “Over the coming weeks and months we will be working to integrate Florida Rock’s facilities and divest operations as required by the court and the Department of Justice,” Don James, chairman and CEO of Vulcan, said in a press release from the company. “We expect to use asset swaps to the extent possible to meet our divestiture requirements. We look forward to achieving the synergies we expect to gain through the merger of these two great companies, and enhancing our growth and profitability.” The eight quarries must continue operating as separate entities until the divestiture is finalized, the Justice Department said, according to a report in the Georgia newspaper Rome News-Tribune. An antitrust suit, United States vs. Vulcan Materials Co. and Florida Rock Industries, Inc., was filed in the U.S. District Court for the District of Columbia on Nov. 13. For a copy of the suit, including the competitive statement, go to www.usdoj.gov/atr/cases/f227600/227646.htm . Nov. 27, 2007 ARTBA 2008 Economic Forecast: Modest Real Growth in Highway Construction MarketHighway and bridge construction should continue to be among the most stable of U.S. construction markets during 2008, showing modest year-on-year growth, according to a forecast released by Dr. William Buechner, vice president of economics and research for the American Road & Transportation Builders Association’s (ARTBA). The value of construction work performed on highway and bridge projects will grow to just under $78 billion in 2008, representing a three to four percent increase over the estimated $75.5 billion during 2007. Equally important, recent signs that rapid inflation in the cost of highway construction materials is easing may allow the projected federal, state, and local highway investment to support more projects in 2008, says Buechner, ARTBA’s top economist, in the forecast. The most important factor driving the outlook for highway and bridge construction in 2008 will be the federal highway program. SAFETEA-LU, the highway and transit law, provided a $3.4 billion increase in federal highway investment in FY 2007 over the 2006 level. At least 80 percent of that money will eventually go directly into construction work. Of the remaining 20 percent, about 9 percent goes to design work and 5 percent to right-of-way acquisition with the remainder spent on environmental mitigation, administration, research and related activities. As these funds move into the pipeline, Buechner says, the biggest impact will occur in the 2008 construction season because of the time needed to design and start projects. This increase, plus other federal highway funds already in the pipeline, will support almost $30 billion of highway and bridge construction work in 2008, up from just under $27 billion in 2007. The annual transportation appropriations bill currently working its way through Congress for fiscal year 2008, with another potential increase in federal highway investment, should also help contribute to federal-aid highway construction during 2008. Historically, federal funds finance approximately 40 to 45 percent of all highway capital investments, including construction. Buechner cautions state and local budgets, however, will, at best, finance about the same amount of highway and bridge construction work in 2008 as they did in 2007 — around $49 billion. There are several reasons this is the case, Buechner says. During the past three years, state and local governments increased their own highway investment substantially in an effort to accomplish as much construction as possible while facing a 40-percent increase in the cost of highway and bridge construction materials. Between 2004 and 2007, state and local funds financed about $15 billion of the total $17 billion increase in highway construction work. The rapid increase in state and local spending left little in their treasuries to finance more growth in 2008. Slower-than-expected growth in highway user fee revenues, and the housing downturn with fewer home sales and lower appraised housing values will also impact tax collections and local highway construction spending. Some states, such as California, are trying to fill the funding gap with bond revenues or other borrowing. Others, like Indiana, have revenues from toll-road monetization or are expanding the use of public-private ventures to construct roads. This may help support growth of highway construction in 2008, but the largest impact is likely to be in future years. According to the ARTBA economist, another factor supporting a forecast for modest growth of highway and bridge construction next year is a three to 4-percent increase in the value of new contracts awarded for highway and bridge projects so far in 2007. The 2008 ARTBA forecast is also based on the continued easing in construction material costs. In 2005, prices for highway and bridge construction materials rose more than 12.5 percent, followed by another 10.8-percent increase in 2006. These cost increases absorbed almost all of the increased highway construction spending those years — with the market implication of fewer, yet more expensive projects being let by state and local governments. By contrast, during 2007, material costs are up only about 5 percent, impacted to a large degree by the downturn in housing construction. ARTBA expects this trend to continue in 2008. The cost of oil, which impacts the cost of highway construction materials and equipment operation, is always a wild card. ARTBA projects little growth in subway and light rail construction for 2008 — funding for the federal “New Starts Program” is up about $100 million, but most of the available funding is already dedicated to ongoing projects. Airport construction will also be modest, despite growing needs, until Congress completes action on a new aviation authorization measure with additional investment for the Airport Improvement Program. Nov. 27, 2007 Neighbors Blast Request to Expand Pinesburg QuarryHAGERSTOWN, Md.—Bottom Road resident Billy Payne on Nov. 26 told Washington County officials that it feels like his house is crashing down when workers blast at the Pinesburg Quarry. And it could get worse, he said during a public hearing before the Washington County Commissioners and Washington County Planning Commission, if Martin Marietta Materials Inc. is given permission to expand its interests to mine 77 acres of land that borders the quarry to the north. Paxton Badham of Martin Marietta told county officials and about 60 people in attendance that rezoning the land north of the quarry would not increase mining intensity in that area. There would not be more blasting, dust, or truck traffic unless the market demand increased, he said. The existing quarry has about 20 years of life remaining, Badham said. The additional 77 acres would prolong mining there for 80 more years. "We have to go where the rock is," he said. Martin Marietta has invested millions of dollars in the quarry and employs 19 people there, excluding truck drivers who are privately contracted, he said. But Payne and more than a dozen other people, mostly residents living near the quarry, said their homes are rocked and sometimes their wells are ruined when the quarry blasts. Some of the people said rezoning the land to expand mining could decrease their property values. "When they blast, my house shakes ... I've got cracks in almost every closet," said Grace Myers, who lives across the street from the proposed expansion site. Myers suggested that the planning commission and county commissioners visit her property to see what she is experiencing before they vote. Patricia Olchak, a Clear Spring Road resident, said she doubted whether the quarry follows blasting regulations. "(My house) has a double foundation because of the quarry," she said. Washington County Planning Director Mike Thompson said before a decision is made to rezone the land, the issue has to go before the county planning commission for a recommendation. That recommendation will be passed on to the Washington County Commissioners, who will have the final say, he said. (Source: (Hagerstown) Herald-Mail. By Dan Dearth) Nov. 29, 2007 U.S. Department of Justice Rules Vulcan Must Sell Eight Operations; Antitrust Suit FiledThe U.S. Department of Justice has ruled that Vulcan Materials Co. must sell of the Florida Rock Six Mile Quarry in Georgia’s Floyd County. Birmingham, Ala.-based Vulcan completed its acquisition of Florida Rock, which has operations in Florida and Georgia, earlier this month. Antitrust laws are requiring that Vulcan must divest itself of eight quarries that produce coarse aggregate in Georgia, Tennessee, and Virginia. Vulcan plans to use asset swaps to the extent possible to satisfy DOJ requirements. “Over the coming weeks and months we will be working to integrate Florida Rock’s facilities and divest operations as required by the court and the Department of Justice,” Don James, chairman and CEO of Vulcan, said in a press release from the company. “We expect to use asset swaps to the extent possible to meet our divestiture requirements. We look forward to achieving the synergies we expect to gain through the merger of these two great companies, and enhancing our growth and profitability.” The eight quarries must continue operating as separate entities until the divestiture is finalized, the Justice Department said, according to a report in the Georgia newspaper Rome News-Tribune. An antitrust suit, United States vs. Vulcan Materials Co. and Florida Rock Industries, Inc., was filed in the U.S. District Court for the District of Columbia on Nov. 13. For a copy of the suit, including the competitive statement, go to www.usdoj.gov/atr/cases/f227600/227646.htm . Nov. 27, 2007 ARTBA 2008 Economic Forecast: Modest Real Growth in Highway Construction MarketHighway and bridge construction should continue to be among the most stable of U.S. construction markets during 2008, showing modest year-on-year growth, according to a forecast released by Dr. William Buechner, vice president of economics and research for the American Road & Transportation Builders Association’s (ARTBA). The value of construction work performed on highway and bridge projects will grow to just under $78 billion in 2008, representing a three to four percent increase over the estimated $75.5 billion during 2007. Equally important, recent signs that rapid inflation in the cost of highway construction materials is easing may allow the projected federal, state, and local highway investment to support more projects in 2008, says Buechner, ARTBA’s top economist, in the forecast. The most important factor driving the outlook for highway and bridge construction in 2008 will be the federal highway program. SAFETEA-LU, the highway and transit law, provided a $3.4 billion increase in federal highway investment in FY 2007 over the 2006 level. At least 80 percent of that money will eventually go directly into construction work. Of the remaining 20 percent, about 9 percent goes to design work and 5 percent to right-of-way acquisition with the remainder spent on environmental mitigation, administration, research and related activities. As these funds move into the pipeline, Buechner says, the biggest impact will occur in the 2008 construction season because of the time needed to design and start projects. This increase, plus other federal highway funds already in the pipeline, will support almost $30 billion of highway and bridge construction work in 2008, up from just under $27 billion in 2007. The annual transportation appropriations bill currently working its way through Congress for fiscal year 2008, with another potential increase in federal highway investment, should also help contribute to federal-aid highway construction during 2008. Historically, federal funds finance approximately 40 to 45 percent of all highway capital investments, including construction. Buechner cautions state and local budgets, however, will, at best, finance about the same amount of highway and bridge construction work in 2008 as they did in 2007 — around $49 billion. There are several reasons this is the case, Buechner says. During the past three years, state and local governments increased their own highway investment substantially in an effort to accomplish as much construction as possible while facing a 40-percent increase in the cost of highway and bridge construction materials. Between 2004 and 2007, state and local funds financed about $15 billion of the total $17 billion increase in highway construction work. The rapid increase in state and local spending left little in their treasuries to finance more growth in 2008. Slower-than-expected growth in highway user fee revenues, and the housing downturn with fewer home sales and lower appraised housing values will also impact tax collections and local highway construction spending. Some states, such as California, are trying to fill the funding gap with bond revenues or other borrowing. Others, like Indiana, have revenues from toll-road monetization or are expanding the use of public-private ventures to construct roads. This may help support growth of highway construction in 2008, but the largest impact is likely to be in future years. According to the ARTBA economist, another factor supporting a forecast for modest growth of highway and bridge construction next year is a three to 4-percent increase in the value of new contracts awarded for highway and bridge projects so far in 2007. The 2008 ARTBA forecast is also based on the continued easing in construction material costs. In 2005, prices for highway and bridge construction materials rose more than 12.5 percent, followed by another 10.8-percent increase in 2006. These cost increases absorbed almost all of the increased highway construction spending those years — with the market implication of fewer, yet more expensive projects being let by state and local governments. By contrast, during 2007, material costs are up only about 5 percent, impacted to a large degree by the downturn in housing construction. ARTBA expects this trend to continue in 2008. The cost of oil, which impacts the cost of highway construction materials and equipment operation, is always a wild card. ARTBA projects little growth in subway and light rail construction for 2008 — funding for the federal “New Starts Program” is up about $100 million, but most of the available funding is already dedicated to ongoing projects. Airport construction will also be modest, despite growing needs, until Congress completes action on a new aviation authorization measure with additional investment for the Airport Improvement Program. Nov. 27, 2007 Neighbors Blast Request to Expand Pinesburg QuarryHAGERSTOWN, Md.—Bottom Road resident Billy Payne on Nov. 26 told Washington County officials that it feels like his house is crashing down when workers blast at the Pinesburg Quarry. And it could get worse, he said during a public hearing before the Washington County Commissioners and Washington County Planning Commission, if Martin Marietta Materials Inc. is given permission to expand its interests to mine 77 acres of land that borders the quarry to the north. Paxton Badham of Martin Marietta told county officials and about 60 people in attendance that rezoning the land north of the quarry would not increase mining intensity in that area. There would not be more blasting, dust, or truck traffic unless the market demand increased, he said. The existing quarry has about 20 years of life remaining, Badham said. The additional 77 acres would prolong mining there for 80 more years. "We have to go where the rock is," he said. Martin Marietta has invested millions of dollars in the quarry and employs 19 people there, excluding truck drivers who are privately contracted, he said. But Payne and more than a dozen other people, mostly residents living near the quarry, said their homes are rocked and sometimes their wells are ruined when the quarry blasts. Some of the people said rezoning the land to expand mining could decrease their property values. "When they blast, my house shakes ... I've got cracks in almost every closet," said Grace Myers, who lives across the street from the proposed expansion site. Myers suggested that the planning commission and county commissioners visit her property to see what she is experiencing before they vote. Patricia Olchak, a Clear Spring Road resident, said she doubted whether the quarry follows blasting regulations. "(My house) has a double foundation because of the quarry," she said. Washington County Planning Director Mike Thompson said before a decision is made to rezone the land, the issue has to go before the county planning commission for a recommendation. That recommendation will be passed on to the Washington County Commissioners, who will have the final say, he said. (Source: (Hagerstown) Herald-Mail. By Dan Dearth) Nov. 26, 2007 ARTBA Study: Major Changes Needed to Handle Traffic Increase, Ensure SafetyThe men and women who plan, design, build, and manage the nation’s surface transportation network recently took a long, hard look at the way the federal government is handling transportation. The conclusion? Major changes are necessary if America wants to have a network that is safer and able to handle the huge increase in traffic expected during this century. That’s the core finding in a comprehensive 72-page report released this week by the American Road & Transportation Builders Association (ARTBA). It is the result of a 16-month examination of current federal transportation law, policy and administration by a special ARTBA task force. The association is calling on Congress to “reform, refocus, restructure and refinance” the federal surface transportation programs when they are up for reauthorization in 2009. ARTBA has identified what it believes — in addition to improving safety — should be the two priorities driving future federal involvement in transportation: Ensuring that past mega-billion dollar investments made by the federal government in transportation infrastructure are protected and not allowed to fall into serious disrepair; and building the new, multi-modal infrastructure capacity that is needed to facilitate continued U.S. economic growth and competitiveness. The ARTBA report cites six transportation-related threats currently facing the nation that demand immediate attention:
To respond to these challenges, the association is recommending that the existing federal surface transportation program be refocused and restructured, with two major components. One would be a “core program” largely dedicated to asset preservation and modernization, safety and environmental mitigation activities. Incumbent in this initiative is the need to dramatically increase federal investment in highway and public transportation improvements. ARTBA recognizes, however, additional resources alone will not solve the nation’s transportation challenges. The association has developed a series of specific operational recommendations to improve the efficiency and effectiveness of the existing programs. The second, a “Critical Commerce Corridors,” or “3C,” program, would be focused on adding new highway capacity, intermodal, inland waterway and seaport connectors, and upgraded border and gateway facilities. Under the ARTBA plan, the federal department of transportation would be charged with coordinating development of a 25-year “Critical Commerce Corridors” strategic business plan, identifying projects for development on a regional basis, setting completion priorities, and establishing cost estimates. ARTBA suggests the “3C” program could be kicked off by tackling the nearly 200 traffic choke points on the Interstate Highway System that have already been identified by the U.S. Department of Transportation. It also envisions utilization of existing Interstate Highway System median and right-of-way, with tunneling and overhead structures where appropriate, for development of new freight and passenger rail capacity and “truck-only” lanes. A number of new corridors that would facilitate international freight movements have already been identified by state coalitions, the association points out. Meeting “core program” needs will require adjustments in the existing federal motor fuel excise, ARTBA says. It suggests using new revenue streams, utilizing freight-related federal user fees, public/private investments and bonding to finance the proposed commerce corridors initiative. The National Asphalt Pavement Association, American Concrete Pavement Association, National Stone, Sand and Gravel Association, and Portland Cement Association have already endorsed the 3C proposal. ARTBA has shared the 3C concept with the National Surface Transportation Policy and Revenue Study Commission that is chaired by U.S. Secretary of Transportation Mary Peters. The 3C proposal was also included as a “top 10” recommendation in a July 2007 report “A New Vision for the 21st Century” published by the American Association of State Highway & Transportation Officials (AASHTO). Among the other recommendations in ARTBA’s reauthorization report: Preparing for the Future: Begin the transition to new financing mechanisms, such as a motor vehicle mileage tax, recognizing that alternative fuels and increased efficiency will eventually dilute the ability of the federal gasoline tax to be the primary financing source for surface transportation improvements. ARTBA believes the next reauthorization bill should implement a specific transition timeline to ensure the implementation of this new financing architecture. Improving Project Delivery and Protecting the Environment: Ensure timely delivery of transportation benefits by enhancing U.S. Department of Transportation authority over the planning process and provide opportunity for interested and qualified states to have control over environmental reviews. Transportation Enhancement Program funds should also be eligible for environmental stewardship measures—above and beyond minimum mitigation requirements. Defending Public Safety: Boost infrastructure investment to improve motorist and highway worker safety in pursuit of a zero traffic fatality goal. ARTBA recommends increasing resources for SAFETEA-LU’s High-Risk Rural Road Safety Program to improve roadways that represent a documented safety threat. The ARTBA plan also included legislative recommendations aimed at earmark reform, “maintenance of effort” requirements, increased federal investment in research, and revising certain “hours of service” requirements affecting short-distance, job-site transportation construction drivers in commercial vehicles. Nearly 75 ARTBA volunteer leaders from the public and private sectors developed the policy proposals in the report. The ARTBA SAFETEA-LU Reauthorization Task Force was co-chaired by Tom Hill, chief executive of Atlanta, Ga.-headquartered Oldcastle, Inc., and Paul Yarossi, president, HNTB Holdings, Ltd., HNTB Corporation, based in New York City. The full 72-page report can be found in the “government affairs” section of www.artba.org. A 16-page executive summary is also available online. Nov. 21, 2007 Department of Homeland Security Releases Finalized Appendix A List of Chemicals of InterestOn Nov. 20, 2007, the
Department of Homeland Security released its Appendix A (www.dhs.gov/xlibrary/assets/chemsec_appendixa-chemicalofinterestlist.pdf)
list contained in the Chemical Facility Anti-Terrorism
Standards, or CFATS. The list contains chemicals that
facilities must report if the chemical meets or exceeds the
screening threshold quantity, or STQ. Companies must report
the chemicals by completing the Top Screen within 60 days of
publication of the final list of chemicals in the Federal
Register. Appendix A was finalized on Nov. 20 when it was
published in The Federal Register, and companies must
register on or before Jan. 19, 2008. Nov. 21, 2007 Vulcan, Florida Rock merger to impact local Georgia quarryLast week’s merger of Vulcan Materials Co. and Florida Rock Industries Inc. will have an immediate impact in Columbus, Ga., though the extent of that impact is unknown. As part of the deal that allowed Vulcan to purchase Florida Rock for $4.6 billion, the two companies must divest of eight rock quarries in Georgia, Tennessee, and Virginia. One of those quarries is the Florida Rock facility on Smith Road that employs 76 people. There is a Vulcan Materials quarry on Fortson Road at the Muscogee-Harris County line that employs 48 people. Both quarries produce coarse aggregate, a rock material that is used in concrete and asphalt. The U.S. Department of Justice’s Antitrust Division filed a civil antitrust lawsuit last week in U.S. District Court in Washington, D.C., to block the proposed transaction. At the same time, the Department filed a proposed consent decree that, if approved by the court, would resolve the lawsuit and the Department’s competitive concerns. The sale was then finalized on Friday. Susan Burns, a Vulcan Materials spokesperson based in New York, said the company was “working to integrate Florida Rock’s facilities and divest operations as required by the court and the Department of Justice.” It is unsure how Vulcan will divest the Florida Rock quarry and what will happen to those employees. “We are exploring a variety of means of divesture, whether outright sales or, to the extent possible, asset swaps,” Burns said. “We can confirm that we will be divesting the Florida Rock quarry in Columbus, Ga., and we will be providing those employees with more information as soon as we are able.” Officials at the local plants referred all questions to the Vulcan Materials Birmingham office, which referred them to a New York public relations firm. If Vulcan had not been forced to unload the eight quarries, it could have driven prices up, the Justice Department claimed. “Without the divestitures obtained by the Department, purchasers of coarse aggregate in parts of the Atlanta metropolitan area, in Columbus, Ga., in Chattanooga, Tenn., and in South Hampton Roads, Va., likely would have faced higher prices as a result of this transaction,” said Thomas O. Barnett, Assistant Attorney General in charge of the Department’s Antitrust Division. “The divestitures will ensure that these customers will continue to receive the benefits of competition.” (Source: Columbus Ledger-Enquirer - McClatchy-Tribune Information Services via COMTEX) Nov. 19, 2007 Martin Marietta’s Profits JumpMartin Marietta Materials posted record earnings in the third quarter despite lower demand for aggregates such as crushed stone, the company reported. Profits jumped 18.5 percent to $90.3 million compared to a year ago. Profits on a per-share basis rose 28 percent to $2.12. Higher prices offset the decline in sales volume. In addition, a lower overall tax rate added 12 cents per share to profits, versus a six-cents-per-share impact a year earlier. Net sales totaled $548.9 million, up 4 percent. (Source: Raleigh News and Observer. By David Ranii, Staff Writer) Nov. 19, 2007 Lafarge Acquires Quarry Firm To Boost Production CapacityCement manufacturer Lafarge South Africa on Nov. 12 said that it had bought Mpumalanga-based quarry company Stonetech for an undisclosed amount. The acquisition was effective on Nov. 1, and brought two hard rock quarries that would boost production to Lafarge’s aggregate capacity to more than 900, 000 tons per year. One of the quarries used to be owned by State rail utility Transnet Freight Rail, formerly Spoornet, and was rail linked, with a strong supply capacity for rail ballast, Lafarge stated. Lafarge declined to say how much it paid for Stonetech. (Source: Engineering News Online, Nov. 12, 2007. By Matthew Hill.) Nov. 19, 2007 MDU Resources Buys Star AggregatesMDU Resources Group Inc. of Bismarck, N.D., announced it has acquired Star Aggregates Inc., a Cheyenne, Wy.-based aggregate producer in Cheyenne. Star Aggregates will become part of Knife River Corp., the construction materials and mining subsidiary of MDU Resources. Financial details of the acquisition were not disclosed. Star Aggregates has permitted aggregate reserves in the Cheyenne market. Its services include earthwork, highway construction, and asphalt paving. In addition, it supplies aggregate and asphalt to third-party customers. The company employs approximately 85 individuals. Star will operate as part of Knife River’s Mountain Region, which includes operations in Casper as well as Billings, Belgrade, Kalispell, Missoula, and Polson, Mont. (Source: Rocky Mountain Construction) Nov. 16, 2007 Vulcan Materials Completes Acquisition of Florida RockBirmingham, Ala.-based Vulcan Materials Co. on Nov. 16 publicly announced the completion of its acquisition of Florida Rock Industries, Inc., a leading producer of construction aggregates, cement, concrete, and concrete products in the Southeast and Mid-Atlantic states, for total consideration to Florida Rock shareholders of approximately $4.2 billion based on the closing price of Vulcan stock on Nov. 15, 2007. The acquisition further diversifies the geographic scope of Vulcan’s operations, providing the company with an enhanced presence in attractive Florida markets and in other high-growth Southeast and Mid-Atlantic states while also bringing Vulcan more than 2 billion tons of aggregates reserves in markets where reserves are increasingly scarce. “We are very pleased to announce the closing of our acquisition of Florida Rock,” Don James, Vulcan chairman and CEO, says in a press release. “We can now begin pursuing the synergies from our combination and opportunities from our broadened regional footprint and expanded presence in some of the most attractive construction materials markets in the U.S. The addition of Florida Rock will enhance our strategic position and long-term growth opportunities. “We are particularly pleased to welcome Florida Rock — a company we have respected for many years and know to share our values and management philosophy — into the Vulcan family,” James continues. “We look forward to our collaboration and entering the next chapter of our history together.” Florida Rock President and CEO John Baker adds, “We are extremely pleased to have completed the combination of our organization with Vulcan Materials. We have great respect for Vulcan Materials’ team and believe they offer an ideal business fit and a highly compatible culture to Florida Rock’s. “This is good for our shareholders as well as our employees who will enjoy enhanced opportunities as part of an even stronger and more geographically diversified organization that has operations in key high-growth markets nationwide,” Baker notes. Under the terms of the agreement announced on Feb. 19, 2007, Vulcan Materials Co. stockholders are to receive one share of common stock in a new holding company (whose subsidiaries will be Vulcan Materials Co. and Florida Rock) for each Vulcan Materials Co. share. Former Florida Rock stockholders will receive either 0.63 shares of the new holding company or $67 in cash, without interest, for each Florida Rock share, subject to pro-ration, to ensure that in the aggregate 70 percent of Florida Rock shares will be converted into cash and 30 percent of Florida Rock shares will be converted into stock. The pro rata allocation of cash and stock payable to the electing holders will be announced following receipt of the final election results, which are expected to be available on or about November 21, 2007. In connection with the completion of the transaction, Florida Rock’s shares will no longer be traded on the NYSE. Further details about the transaction are available on the Web at www.vulcanfloridarock.com. In addition, the quarterly dividend of 46 cents per share announced by Vulcan on Oct. 16, 2007 will be payable Dec. 10, 2007 to shareholders of record on November 26, 2007 of the new holding company’s common stock. Nov. 14, 2007 Vulcan, Florida Rock Must Divest Nine Aggregate Facilities to Close Merger DealThe Department of Justice announced on Nov. 13 that it has reached a settlement that will require Vulcan Materials Co. and Florida Rock Industries Inc. to divest eight quarries that produce coarse aggregate in Georgia, Tennessee and Virginia and one distribution yard in Virginia in order to proceed with their proposed $4.6 billion merger. The Department said that, without the divestitures, the proposed acquisition likely would result in higher prices for purchasers of coarse aggregate in certain areas served by the quarries to be divested. The Department’s Antitrust Division filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C. to block the proposed transaction. At the same time, the Department filed a proposed consent decree that, if approved by the court, would resolve the lawsuit and the Department’s competitive concerns. “Without the divestitures obtained by the Department, purchasers of coarse aggregate in parts of the Atlanta metropolitan area, in Columbus, Ga., in Chattanooga, Tenn., and in South Hampton Roads, Va., likely would have faced higher prices as a result of this transaction,” said Thomas O. Barnett, Assistant Attorney General in charge of the Department’s Antitrust Division. “The divestitures will ensure that these customers will continue to receive the benefits of competition.” Coarse aggregate, a type of construction aggregates, is crushed stone produced at quarries or mines. It is used in a variety of applications, such as road construction, and for the production of ready mix concrete and asphalt. The Department concluded that the proposed merger would have resulted in increased prices for coarse aggregate in several areas. In southeast Atlanta and the South Hampton Roads area of Virginia, Vulcan and Florida Rock are the only two firms competing to supply coarse aggregate. The parties are two of only three or four firms contracting to supply coarse aggregate in Columbus, Ga.; Chattanooga, Tenn.; and other parts of the greater Atlanta metropolitan area. (Source: The Student Operated Press/SOPnewswire) Nov. 7, 2007 MSHA to Demonstrate Newly Conceived Mine Escape SystemTRIADELPHIA, W.Va.—The U.S. Department of Labor’s Mine Safety and Health Administration (MSHA) will demonstrate a mine escape system for miners suddenly faced with an underground emergency on Thursday, Nov. 8, at the agency’s Approval and Certification Center in Triadelphia. The rescue approach, dubbed “The Great Escape,” was conceived and developed by MSHA's technical support division. It provides miners a constant and uncontaminated supply of breathable air, along with a rapid, safe means of escape through an isolated, structurally protected escape path. The system, as designed, also could safely protect communications and tracking systems from fire and explosive forces. EVENT: Mine Safety and Health Administration's mine escape system demonstration. FEATURING: Overview by Mark Skiles, MSHA's director of technical support, and prototype demonstration. DATE: Thurs., Nov. 8 TIME: 10 a.m. to noon ET LOCATION: Approval
and Certification Center Nov. 6, 2007
S-MINER Act Advances in the HouseThe House Committee on Education and Labor approved substitute legislation that combined H.R. 2768 (the S-MINER bill) with H.R. 2769 (the Miner Health Enhancement Act). The substitute was offered by Chairman George Miller (D-Calif.). A Democratic amendment to strike the section of the bill beginning on page 64 (d) “Emergency and Hazardous Chemical Reporting for Mines Burning Hazardous Waste as Fuels” based on a question of committee jurisdiction (it really is the jurisdiction of the House Energy and Commerce Committee) passed. Three Republican amendments, which would have eased the regulatory burden of the bill and allowed more input of employees on company safety committees were defeated on party-line votes. Final approval came on a 26-18 vote with all Democrats supporting passage and all Republicans present (three were absent including Biggert (Ill.), Price (Ga.) and Heller (Nev.). The bill now heads to the House floor where it could be taken up as early as next week. NSSGA will send a letter to all members of the House urging opposition to the S-MINER bill and advising this is a key vote for purposes of our member scorecards. (Source: National Stone, Sand & Gravel Association) Nov. 5, 2007 Randall-Reilly buys Aggregates Manager, Better Roads magazinesTuscaloosa, Ala.-based Randall-Reilly Publishing, the nation’s leading business-to-business media company serving the transportation and construction markets, t acquired Aggregates Manager and its sister publication, Better Roads, from Des Plaines, Ill.-based James Informational Media Inc. The acquisition was publicly announced on Nov. 5. “These acquisitions are a natural fit for our Construction Media Group,” says Mike Reilly, president and CEO of Randall-Reilly Publishing. “Better Roads has distinguished itself as the leading magazine for highway professionals for 76 years, and Aggregates Manager is the voice of operations pros in the aggregates field,” he says. Randall-Reilly’s other construction properties include Equipment World and Total Landscape Care magazines, EquipmentWorld.com, the Top Bid and TopBid.com used-equipment reference guides and Equipment Data Associates, the industry’s most complete source of equipment ownership data. Randall-Reilly inherits an accomplished management team, including James’ four co-partners, Editorial Director Kirk Landers, Publisher Mike Porcaro, and Managing Partners James Moriarty and James Morrissey. “I’ve known the James partners as fellow construction industry association members as well as competitors for years,” says Dan Tidwell, vice president and group publisher of Randall-Reilly’s Construction Media Group. “Being on the same team with these gentlemen is a partnership one can only dream of — but now it’s a reality.” Tidwell also points out that the acquisition brings together some of the top editorial talent in the construction industry: Marcia Gruver, Equipment World’s editorial director, James’ Editorial Director Kirk Landers, who served as chief editor of Construction Equipment magazine for several years, and Randall-Reilly’s Vice President of Editorial Linda Longton, who previously served as editor of Equipment Today magazine. From James’ perspective, the goal of the sale was to take the magazines to the next level, Porcaro says. “We chose Randall-Reilly after evaluating everyone in the market and felt we could serve our industries even better from within the Randall-Reilly group,” he says. Reilly says of Better Roads and Aggregates Manager: “We’re ready to take these magazines to new heights. With the need to build and maintain North America’s highways and bridges reaching critical levels, and the subsequent need for aggregate in those markets and others, we’re poised for the magazines to continue their upward trend,” he says.” Founded in 1934, Randall-Reilly Publishing is a business-to-business media company focused on the trucking, construction, and industrial markets. The company’s construction division covers the highway and heavy construction, landscaping, aggregates, and used-equipment markets. Randall-Reilly’s trucking division serves the fleet, owner-operator, recruitment, truck stop, used truck and trailer, dealer and heavy-duty aftermarket segments. The company also operates a company-sponsored publication division serving Fortune 500 companies and a UCC-filing database and research group. Randall-Reilly has offices in Tuscaloosa, Ala., Atlanta, Chicago, Charlotte, N.C., and New Berlin, Wis. Nov. 5, 2007 Florida Contractor Leo A. Vecellio Jr. Elected 2007-2008 ARTBA ChairmanLeo A. Vecellio, Jr., chairman, president and CEO of West Palm Beach, Fla.-based Vecellio Group, Inc., has been elected 2007-08 chairman of the American Road & Transportation Builders Association (ARTBA). He received the gavel at the association’s national convention earlier this month in Fort Lauderdale, Fla. Vecellio’s top legislative goal for ARTBA is to continue pressing Congress for a significant increase in federal highway/transit investment as part of the reauthorization of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), which is due by Oct. 1, 2009. ARTBA has launched an “inside the Washington beltway” public affairs and communications campaign to help achieve this goal, Vecellio said. Vecellio has been involved with ARTBA for nearly 10 years. His leadership positions have included senior vice chairman, first vice chairman, southern region vice chairman and vice chairman-at-large. He is a key player in developing the association’s legislative policy positions on federal transportation development issues. Vecellio also serves as a trustee on the ARTBA Transportation Development Foundation. His industry background is extensive. Vecellio literally grew up around transportation construction, joining the family business of Vecellio & Grogan in 1973 with degrees in civil engineering and construction management from Virginia Tech and Georgia Tech, and four years of project management experience as an officer in the U.S. Air Force. Vecellio was integral to the company’s expansion well beyond the mid-Atlantic states, where it was founded by his father, grandfather and uncle in 1938. Today, Vecellio & Grogan is a subsidiary of the Vecellio Group, which operates throughout the southeastern U.S. and beyond, and consistently ranks among the nation’s top 200 contractors. Other operations include heavy/highway contractors Ranger Construction Industries and Ranger Construction – South, mining firm White Rock Quarries, and petroleum and biodiesel companies Vecenergy and Vecenergy BIDA. In addition to leadership roles within ARTBA and the family businesses, Vecellio is active in numerous industry, educational and business associations. He is among the founders and executive members of Floridians for Better Transportation, serves on the Florida “Council of 100”, is a founding member and was first president of the Flexible Pavements Council of West Virginia, and is also active in the Florida Transportation Builders Association and the Contractors Association of West Virginia. He is a director of Natural Resource Partners, L.P. (NYSE: NRP), a member of the “Committee of 100” of the College of Engineering at Virginia Tech, and a former trustee of the Virginia Tech Foundation, where he chaired the investment committee. Vecellio and his wife, Kathryn, have two sons, Christopher and Michael, who are also active in Vecellio Group management. Nov. 5, 2007 ARTBA President and CEO Pete Ruane Outlines Vision for Future of America’s Highway ProgramAmerican Road and Transportation Builders Association (ARTBA) President & CEO Pete |
