Mr Barack Obama president of US has announced USD 300 billion package for improving transportation infrastructure in the country. This would significantly reduce the cost of delay estimated to be USD 40 billion annually in shipments of cargo, passenger travel. It will also raise safety and productivity in logistics.
The stimulus package in the form of fresh investment would be implemented against the backdrop of current interest rate of 2.5%, unemployment level of 6.1% and current account balance of (-) USD 406 billion (2.3% of GDP). For raising the fund, Mr Barack Obama has hinted at tough measures.
The US steel industry is enthusiastic about the development as this massive government procurement in building of roads, rail, shipping and airways with foreign content rule in vogue, would lead to significant rise in indigenous demand for steel. Further, the tariff protection through a spate of anti dumping, countervailing measures has already shut the US market to a good number of steel exporting countries like China, Korea, Japan, Turkey, Russia and India.
In addition, the US transportation department announced a 2 year phase out of the older and weaker legacy Track Cars, which means about 2,28,000 track cars would either be replaced or retrofitted to meet the new standards. It has also advised the US Association of Structural Engineers to find out structurally deficient bridges and suggest best methods of construction of these bridges, including ROBs.
This is a classic example of the government joining hands with the industry to solve the problem of bridge safety. In India, the crumbling of flyovers or damages in base structure prompt the government to reconstruct them but the steel industry, unlike the US, does not feel the urge to convince the government to opt for steel concrete composite bridges.
A study from the Netherlands has revealed that steel is more than twice as sustainable as other construction material and therefore should become a critical factor in selecting construction material.
Source – Financial Express