FedEx calls for urgent US infrastructure upgrades for e-commerce
Time：2017-02-07
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"We are at a critical crossroad, given the economic challenges that face our nation," FedEx chairman and CEO Frederick Smith. "If we want to maintain the US`s status as a global economic and policy leader, we must work together on policy and infrastructure solutions that will modernise and drive our economy forward."
Forecasts that online sales will rise 26 per cent from 2016 to US$2.4 trillion globally by 2018 are adding to the need for infrastructure upgrades to improve a slowing economy, Mr Smith said in prepared testimony before the US House Transportation and Infrastructure Committee.
President Donald Trump has promised to repair and upgrade aging roads, bridges and airports while creating jobs for millions of people. Mr Trump hasn`t provided details of his plan or how it would be funded, but his advisers have said it could amount to as much as $1 trillion. Mr Trump, they said, wants to leverage more private capital with a new tax credit or other mechanisms.
Mr Smith, in his prepared testimony, said FedEx and other transport providers require an improved air-traffic control system, updated sea and air ports and well-maintained roadways.
Democrats have expressed a willingness to work with Mr Trump, including in the Senate, where some lawmakers have proposed spending $1 trillion over the next decade. Republican congressional leaders, however, are more in favour of private investment playing a larger role and have said extra federal spending must be offset by cuts to avoid adding to the debt and deficit.
Transportation Secretary Elaine Chao, who was sworn in on Tuesday, suggested during her January 11 confirmation hearing that both additional federal spending and more private investment are being considered. She said a "bold new vision" is needed to "take full advantage of the estimated trillions in capital that equity firms, pension funds, and endowments can invest" in infrastructure.