FEDERAL SCOOP

 

DESTINATION GLOBAL MARKETS: U.S. Mass Transit Industry Makes the Connection
by Mark C. O’Grady, Liaison Officer of the International Mass Transportation Program,
U. S. & Foreign Commercial Service

"Humankind has entered ‘an urban millennium’ that will require more effort to make cities livable…" -- U.N. Secretary-General Kofi Annan

Global markets for the U. S. mass transportation industry continue to grow rapidly with the rise of modern mega-cities worldwide. City planners around the world are aggressively working to develop efficient urban transit to meet the needs of their citizens. Currently, some 2.5 billion people live in cities, and it is predicted that in 30 years, the number of city dwellers will double to 5 billion, with 70 percent living in cities located in developing countries. In just 14 years, as more children are born and the rural populous flocks to urban centers in search of better standards of living, developing nations will harbor 22 of the globe's 26 largest metropolitan areas.

U.S. EXPORTS OF MASS TRANSIT EQUIPMENT

Ensuring that U. S. exporters of mass transportation equipment and services have easy access to decision makers in these countries is the primary goal of the newly created International Mass Transportation Program (IMTP). The IMTP, sponsored by the Federal Transit Administration (FTA) of the U. S. Department of Transportation, is an innovative interagency cooperative effort created to address this rapidly growing export sector for American companies. IMTP was created in September of 1999 as part of the Transportation Equity Act for the 21st Century. The IMTP combines the technical and industry expertise of FTA with the significant trade promotion and export facilitation capabilities of the International Trade Administration to identify and promote U. S. participation in mass transportation export opportunities worldwide. The IMTP has two complimentary goals: (1) informing the United States domestic mass transportation community about technological innovations available in the international marketplace; and (2) developing and enhancing activities that may afford domestic businesses the opportunity to become globally competitive in the export of mass transportation products and services.

The IMTP partners recognize that the well being of the U. S. domestic transportation industry is inextricably tied to the international mass transportation projects worldwide. In the new global marketplace the U. S. transportation industry simply cannot survive unless it remains internationally competitive. Through its unique partnerships with industry and government, the IMTP has developed a number of opportunities both domestically and internationally to provide U. S. firms the access and assistance needed to expand into new markets.

The IMTP and its partners are working to highlight export opportunities for U. S. firms through a variety of promotional events. Some of these events include business development and trade missions, reverse buyer missions and participation in domestic and international trade shows. In March the IMTP will provide technical and logistical support to delegations of transit professionals from China and Korea. The two groups will be visiting various U. S. cities and meeting with prospective business partners. The U. S. Trade and Development Agency and the Private Infrastructure Investment Center of Korea are jointly sponsoring 45 Korean transportation professionals to participate in a three-city business briefing on rail and port development projects in Korea. Concurrently, a self- funded tour of transportation professionals from Shanghai, China will visit Los Angeles and Washington, D. C. to learn about effective means of coordinating city bus and rail services. Shanghai just began tests of China’s first elevated light rail. The new system has connections with subways, trains and buses at 17 stations. Over the next several months, the IMTP will also be sponsoring overseas events in Thailand, Vietnam, China and the United Kingdom.

ASIAN TRANSPORTATION OPPORTUNITIES HIGHLIGHTED

IMTP will be launching its second annual Asian Mass Transportation Trade Mission June 25 through July 6 of this year. This event will reinforce the longstanding history of U. S. investment in Asian transportation markets. The event will build on relationships established in IMTP’s 2000 Asian Mission and the U. S. Trade and Development Agency’s 1998 Asian Regional Surface Transportation conferences.

The start of the second annual mission will coincide with a Design- Build Workshop organized by the Transportation Research Board of the National Academy of Sciences being held in Bangkok, Thailand. This regional event will attract participants from across Asia for mission participants to meet and discuss opportunities in infrastructure development in these countries. Thailand continues to aggressively address its chronic traffic situation through several innovative infrastructure projects. With the first leg of its Skytrain in operation and its mammoth subway system over 50 percent complete, Bangkok is still wrestling with a number of technical and operational decisions that represent clear opportunities for U. S. firms, specifically in the operations and maintenance sectors.

The mission will then visit Ho Chi Minh City, Vietnam. Officials from Ho Chi Minh City and Hanoi, Vietnam’s Capital, will be participating in briefings meetings to ensure that participants get unparalleled access to the organizations and companies participating in infrastructure projects. A significant part of Vietnam’s budget will be spent on public transport projects in the next 10 years to meet the demand for passenger travel. The railway development plan focuses on building an urban railway network, with subway as well as elevated trains, building railway stations and upgrading the existing Hoa Hung rail station in Ho Chi Minh City.

Mission participants will also travel to Taipei, Taiwan’s capital. After a full day of meeting with Taiwan officials on projects in Taipei and other cities, mission members will travel by bus along the proposed route of the Taipei-Kaohsiung bullet train to visit Kaohsiung. In January, construction was begun on Kaohsiung’s long- delayed mass transit railway system, which is expected to cost nearly $6 billion. The mission will conclude with a visit to the city of Guangzhou. In December 2000, the Planning Commission of Guangzhou City announced its plan to develop its third subway line costing approximately $1.92 billion. China represents a particularly promising market, as it plans to spend $26 billion on urban mass transit systems over the next five years, resulting in 400km of subways and light rail systems by 2005.

LONDON: A EUROPEAN HUB FOR TRANSPORTATION OPPORTUNITIES

The IMTP also places strong emphasis on industry events to bring U. S. exporters together with foreign buyers. IMTP will be launching its first "American Pavilion" at the International Union of Public Transport (UITP) 54th International Congress and International Exhibition of Public Transport — City Transport 2001 in London, England, May 20- 25, 2001. London makes an excellent hub to attract buyers from across Europe since it has always been in the forefront of transport developments, and it has a strong transport history, being the first city to have a subway when the famous London Underground opened in 1863. London itself offers promising opportunities for U. S. exporters of mass transit goods and services as the City’s new government begins implementation of expansive public/ private partnerships to bring the London Underground up to the best modern standards. A host of business meetings and official receptions will ensure that Pavilion exhibitors meet with decision- makers from London and across Europe.

The U. S. exhibitors at the Pavilion will benefit from all these additional Pavilion services at a cost of $700 less than an average booth on the show floor. One of the biggest promotional activities at the London Pavilion will be the formal announcement of the International Buyer Program planned for the International Public Transportation Expo (ITPE) in Las Vegas, Nevada, September 22- 26, 2002. Held only once every three years, this is the largest conglomeration of transit buyers and sellers in the world. Commercial Offices around the world will be actively recruiting delegations to meet with U. S. companies attending or exhibiting at the show.

By forging a strategic alliance with industry and government, the IMTP is creating new and innovative opportunities for U. S. mass transit equipment and service providers to gain market share of the rapidly expanding global market for these goods and services.

CONTACT

For more information regarding the opportunities offered by the IMTP, contact

Mark C. O'Grady,
Liaison Officer, International Mass Transportation Program Federal Transit Administration,
USDOT Office of Research, Demonstration & Innovation
400 Seventh St., SW;
Room 9401
Washington, DC 20590
Tel: (202) 366-5907
Fax: (202) 366-3765
Email: Mark.Ogrady@fta.dot.gov

Please visit the IMTP website at www.usatrade.gov/imtp for more information on these and a host of other export opportunities.

 

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