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Infrastructure issue bridges gap between forwarders, integrators

RIVALS UPS and FedEx have made common cause to call for more infrastructure investment, tax simplification, and free and fair trade, says Brandon Fried, executive director of the US Airforwarders Association.

Mr Fried seconds their joint plea for government policies to be simpler, more equitable and growth-oriented.

FedEx CEO Fred Smith and UPS CEO David Abney argued that the US needs to set more ambitious targets for its growth after noting that the real two per cent annual growth in recent years is insufficient.

"Bigger thinking will encourage company planners to innovate and unleash productivity, but the right policies need to be in place so that everyone can prosper, they say," said Mr Fried, paraphrasing the two express delivery giants.

The express leaders called for the implementation of simple, fair and progressive taxation as the cornerstone of growth, where lower tax rates, the elimination of loopholes and tax code simplification can create opportunity in the business sector, he said.

The resulting rise in GDP would keep tax revenue constant, so the government could still fund necessary programmes while allowing individuals and firms to invest more for growth.

Other countries, including China and India, are investing significant amounts into infrastructure as the United States falls behind. This global competition is why the US must expand and modernise its roads, bridges, airports, seaports and other transport modes.

A long-term approach with multiple funding mechanisms, including user fees and innovative partnerships with the private sector, is essential, but these funds must be dedicated specifically to transport infrastructure.

Both CEOs agree that their companies are significant users of the transportation system and are prepared to pay their share for the use of new roads, bridges and aviation systems.

Forwarders using those systems should be ready to pay their proportional share, as well.

In August, to address the infrastructure issue, President Donald Trump signed an executive order aimed at curtailing the time it takes for an infrastructure project to be approved and delivered.

The requirement allows the administration to develop a scorecard that tracks progress on a quarterly basis. Projects that fail to achieve critical milestones will automatically generate senior agency leadership attention.

Presently, the average environmental review takes about five years and can be subject to more than 65 requirements or permits.

Messrs Smith and Abney realise that business and government must work together. "If the government lays the groundwork through tax simplification, fair trade and infrastructure investment - and resists the urge to micromanage - businesses will deliver improvements that will benefit a multitude of industries," said Mr Fried.