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Peters expected to be nearly unanimously approved by the Senate; has backing by both trucking and rail officials

John Schulz, Contributing Editor -- Logistics Management, 9/26/2006

WASHINGTON—Every once in awhile in Washington there is person nominated for a post who seems to possess exactly the right kind of background, experience, connections and temperament for the job. Mary Peters, the odds-on choice to be the nation’s 15th Transportation Secretary, would appear to be just that nominee. She would be the nation’s second female DOT secretary.
 
A transportation professional with decades of experience, the former Arizona state transport secretary also has experience at the federal level. She spent nearly four years as Federal Highway Adminstrator, leaving that post in the middle of 2005. Prior to being tapped by President Bush as the nominee to replace retiring Transportation Secretary Norman Y. Mineta, Peters was a principal at HDR, an architectural, engineering and consulting firm in Arizona.

Unique transportation experience across modes
Unlike many previous DOT secretaries, Peters brings experience with most modes of transport to the job. She even professes to understand the importance of freight to the nation’s economic well-being. During her tenure at FHWA, Washington lobbyists recall her focus on freight, a rarity for a DOT secretary. That’s because of the old adage: “Freight doesn’t vote.”
 
Peters is expected to be nearly unanimously approved by the Senate as she is widely viewed as a safe, consensus choice with bipartisan backing. Already she has backing from both trucking and rail officials, who rarely agree on anything in Washington. On Monday, September 25, the United States Senate Commerce Committee reported out Mary Peters to be Secretary of Transportation in an off-the-floor markup by a unanimous vote of 22 to 0. Next up: Consideration by the full Senate for confirmation.

"I think she will be good for the agency,” says Randy Mullett, vice president of government affairs for Con-way, the $4.2 billion trucking concern. “She will be a good administrator and she's got the faith of the people inside of the agency. She was very active in safety and she came from an agency, the FHWA, that's closely aligned with our industry."

Edward R. Hamberger, president and CEO of the Association of American Railroads, called Peters a “superb” choice to lead the DOT at a time when congestion and other transportation issues are affecting Americans’ mobility. He said Peters was “uniquely qualified” for the post.
Hamberger said while Peters was Arizona’s Transportation Secretary and also while she was Federal Highway Administrator, she exhibited a capacity to master transportation policy across all modes. Her weakest suit may be aviation but lobbyists in that industry insist her lack of experience there is hardly threatening.

One thing to look for at a Peters-controlled DOT is how strongly the agency pushes for increased use of tolling and privatization to pay for transport improvements. Federal fuel taxes (18.4 cents per gallon for diesel, 23.4 cents for gasoline) have been frozen since 1993, making it tough to keep up with infrastructure costs.

Robert Poole, founder and director of Los Angeles-based Reason Foundation, which advocates free-market solutions to transport congestion and is a strong toll advocate, called Peters’ nomination a “home run” for Americans hoping for a better transport system.

From Federal Highway Administrator to Transportation Secretary
“Mary Peters was the best Federal Highway Administrator this country ever had,” Poole said. “She challenged a rather staid and conservative industry of contractors and state transportation officials to think outside the box, looking at what their customers want and need, and at new ways to meet those needs.”

Con-way’s Mullet said he’s hoping Peters’ fresh perspective she will bring some “rationality” to the federal framework governing private equity highway financing.
“We believe this is necessary to ensure the continued efficiency of a true national highway freight transportation system, rather than the patchwork quilt that appears to be evolving if the current rush toward private equity financing continues," Mullett said.

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