Nevada Resort Association

Testimony of Gary Carano

before the U.S. Senate Subcommittee on Transportation, Infrastructure, and Nuclear Safety

August 8, 2002

 

 

Thank you Senator Reid and members of the subcommittee staff for the opportunity to talk with you today.  My name is Gary Carano, and I am the General Manager of the Silver Legacy Resort Hotel, but I am here today representing the Nevada Resort Association.  The transportation issues that I would like to discuss with you today impact all of my Northern Nevada colleagues, and the resort industry is united in its efforts to address these issues.

 

The Reno/Sparks economy depends on tourism.  We receive over 5 million visitors to Washoe County each year.   These people come here to enjoy the vast recreation, entertainment, and retail opportunities that this area has to offer (appendix 1).  Roughly 35 percent of these visitors travel to Northern Nevada by plane, and nearly all of the rest come by highway.  Northern and Central Californians are this area’s leading customers and these folks come to Reno on Interstate 80.  I-80 is truly the economic lifeline of this community, not only for tourists, but also as a major link of goods and services from San Francisco through the Port of Oakland and on to the east coast (see bullets and graph below).

 

 

 

 

 

 


Goods Movement and the I-80 Corridor

 

¨      Surface transportation for goods and cargo moving across the continental United States generally consists of trucking, trucking to rail, and truck delivery;

¨      Import/export, major distribution centers in Nevada and points east, have greatly impacted the serviceability of the I-80 Gateway Corridor;

¨      Refrigerator trucks, delivery trucks, 18-wheelers are increasing in staggering numbers on our nation’s interstates;

¨      JC Penneys, Walmart, K-Mart and others use fleets of trucks to move goods to and from ports, to distribution centers, and to retail destinations;

¨      Time sensitive deliveries are often managed by employing day and night driving crews to save precious hours on longer trips, such as Oakland to Pittsburg;

¨      A wide variety of crops produced in California’s Central Valley provide food for the nation and the world.

 

 

Port of Oakland - The Port of Oakland history dates back to 1927, the same year the Oakland Airport was built.  The Port is the fourth largest seaport in the United States and is among the top 30 container ports in the world.

                                                             

¨      The Port of Oakland continues its rapid growth;

¨      By the end of the 1960’s, the Port of Oakland had become the leading container port on the U. S. West Coast;

¨      In the year 2000, Oakland’s container volume grew by 7% to 1.8 million TEU’s;

¨      Analysts believe that growth in the Pacific Rim trade will continue to grow at a rate of     5-8% per year;

¨      In the year 2000, the Port’s Maritime operation generated over $1.6 billion in economic impact, which accounted for 16,500 direct and indirect jobs;

¨      The Port of Oakland has plans to nearly double in size over the next 20 years, at a cost of nearly $1 billion.

 

 

 

 


Now, more than ever, we must work together to improve Interstate 80.  The construction of new casinos throughout California and the rest of the nation is challenging the tourism-based economy upon which we rely.  The proliferation of gaming has spread to 48 states.  Vacationers have vast choices that didn’t exist only a couple years ago.  Most notably, Native American casinos are drawing customers who previously traveled to this area. 

 

Nevada’s gaming industry is innovative, exciting, and dynamic.  We have never shied away from competition.  Instead, we have found innovative ways to continue offering world-class facilities that appeal to the public.  As always, we will continue to find ways to draw customers to our exciting resorts.

 

But we need your assistance to help ensure that the infrastructure necessary to bring visitors to Northern Nevada is healthy.  Right now, I-80 from Nevada’s western border to Sacramento is deteriorating.  Much of this road is over 50 years old and in great need of modernization. 

 

Interstate 80 is in such bad condition and design it often dissuades people from making the trip to Reno, especially when they have the option of enjoying recreational or entertainment opportunities closer to home.  Motorists are forced to compete with dense traffic on a two-lane highway (in both directions) that has not increased capacity proportionate to the major population growth in Northern California and Nevada. 

 

 

 


Year 2000 Interstate 80 Congestion

Three-Day Weekend

 

 

Year 2000 Demand vs. Capacity

95% to 105%

110% to 120%

Year 2020 Interstate 80 Congestion

 

Three-Day Weekend

 

 

Year 2020 Demand vs. Capacity

125% to 160%

180% to 220%

 

 

 

 

 

 

 

 


Added to this grim situation is the fact that I-80 is the primary east-west trucking route through the northern part of the nation (see graph below).  Slow moving semis, with insufficient truck-climbing lanes, are highly disruptive to traffic (appendix 2).  Furthermore, the lack of adequate shoulders in most areas can halt traffic when there is an accident or even a simple mechanical failure.  Plus, there are no significant alternative east-west routes when the road is congested or closed.

 




 

 

 


Interstate 80 and the United States of America

 

¨     Interstate 80 links the Pacific Ports in the West and much of the rest of the Nation.

 

 

¨      Interstate 80 starts on the West Coast in the City of San Francisco and heads Eastward through the Port of Oakland, from where many goods, products and services are shipped in and out of the country;

 

¨      Many important metropolitan areas use Interstate 80 as a social and economic lifeline, including: San Francisco, Oakland, Sacramento, Reno, Salt Lake City, Laramie, Cheyenne, Lincoln, Omaha, Des Moines, Davenport, Chicago, South Bend, Toledo, Cleveland, Youngstown, Paterson, and New York City.

 

 

 

 

 


I know that you are aware of these problems and have been working to improve I-80.  Northern Nevada businesses appreciate everything you and your committee have done.  Through your leadership, portions of the decaying highway have been improved.   Moreover, you have played a pivotal roll providing funding of an Intelligent Transportation System.  This high-tech system posts accurate, up-to-the-minute traffic conditions on electronic billboards throughout the Interstate 80 corridor.  Given the unpredictability of severe weather in the Sierra, it is important to have an Intelligent Transportation System that allows motorists to make smart decisions about their trips across the pass. 

 

Finally, we would like to thank you for your help during this year’s appropriation cycle. 

 

Despite all the work that you and Congress have accomplished to fix this important highway, much more needs to be done.

 

The Nevada Resort Association supports the efforts of the Sierra Gateway Coalition, which is a group consisting of Northern Nevada and Northern California businesses, local and regional governments, and public and private associations (appendix 3).  The coalition has identified 11 essential projects on Interstate 80 (see graph below).   These projects range from adding truck-climbing lanes in the mountains, to widening the shoulders for enhanced safety, to adding vehicle lanes in the Sacramento valley.

 

 

 


Interstate 80 Project Locations

 

 

1. I-80 Freeway Widening - $80 M               

2. Donner Pass - $140 M

3. Auburn Roadway Rehabilitation Project - $60 M

4. Acid Flat Rehabilitation - $26 M

5. Narrows Project - $90 M

6. Colfax Project - $25 M

7. Farad Project - $40 M

8. County Line Hill - $100 M

9. Rainbow Bridge Overlays - $19.5 M

10. Nyack Project - $15.5 M

11. Cisco Grove - $80 M

 

¨     Interstate 80 Immediate Needs Total: $676 Million.

As you undertake the important task of passing a new transportation reauthorization bill, we believe the Sierra Gateway Coalition report will help you identify the projects that will bring the most relief to this old highway and to the Reno/Sparks economy. 

 

Highway traffic is not the only transportation concern of the Nevada Resort Association.  Air travel to the Reno-Tahoe airport has decreased since 1997.   In an effort to increase profitability, major airlines have cut several flights to and from Reno.  Prime markets in Canada and Southern California are being choked off by airlines pulling out of this area. 

 

Passenger counts have dropped even more profoundly over the last year.  June’s passenger counts fell 15.6 percent below the June 2001 level.  And passenger counts are down 17 percent for the first six months of this year compared to the previous year.   While much of this drop is due to post-September 11th fear of flying, we are also feeling the effects of stiff competition by native American casinos, the lack of a bowling convention, a poor California economy, and a leery national economy.

 

We understand you have been working hard to encourage airlines to increase flights to Washoe County and broaden our market base, and we are thankful for your work.

 

The drop in air traffic underscores the need to modernize our highway infrastructure.  If our customers are leering to fly, for whatever reason, we want to make sure they don’t have an excuse for driving.  We encourage you to focus on Interstate 80 as you write the next transportation authorization legislation.   Northern Nevada’s economy depends on this link to California, which is desperate need of repair. 

 

Thank you for your consideration of these important issues.


Apendix 1

 

 

Tourism and Interstate 80

 

¨      California and Nevada are each major, international tourist destinations;

¨      California’s share of domestic travel alone in Year 2000 was over 10% of the national market, making it the most traveled state in the country;

¨      Citizens and tourists access Interstate-80 to reach well-known ski resorts, the shores of Lake Tahoe, superior outdoor activities in the Sierra Nevada Mountain Range, as well as outstanding hotels, restaurants and theatres;

¨      Over 5 million tourists visit Reno each year with more than 85% of these tourists using an automobile as their mode of travel;

¨      Reno averages almost 500,000 tourists each month most of them using Interstate 80 in order to reach their chosen destination;

¨      Over 3  Million people visit Lake Tahoe each year;

¨      Tourism accounts for billions of dollars in revenue, taxes, and jobs for California and Nevada;

¨      According to the California Office of Tourism, travel by car is the most popular mode of transportation among California travelers;

¨      Tourism is the third largest employer in California;

¨      Tourism is the largest employer in Nevada;

¨      California and Nevada each depend on I-80 for its prosperity in the tourism marketplace.

 

 

 

 

 

 


Appendix 2

 

Truck Traffic and Interstate 80

 

 

Major California East-West Corridors:

 

Route

Location

Vehicle

Truck

% Trucks

Number of Lanes

 

 

ADT*

ADT*

 

in Year 2002

I-80

Northern

25,500

4,105

16.1

4

 

 

California

 

 

 

 

 

I-8

Southern

13,100

2,620

20

4

 

 

California

 

 

 

 

 

I-10

Southern

18,100

6,516

36

4

 

 

California

 

 

 

 

 

I-40

Southern

10,800

3,336

30.7

4

 

 

California

 

 

 

 

 

 

 

 

 

 

 

 

* ADT = Average Daily Traffic

 

 

 

 

* Note data presented from; Caltrans 1998 Annual Average Daily Truck Traffic

on the California State Highway System Book

 

 

 

 

 

 

¨      California has four interstate freeways serving east-west transcontinental travel and goods movement;

¨      Three of the four are in Southern California;

¨      I-80 is the only east-west transcontinental freeway in northern California;

¨      I-80 serves the east from San Francisco and Oakland through Sacramento, Reno, Salt Lake City, Laramie, Cheyenne, Lincoln, Omaha, Des Moines, Davenport, Chicago, South Bend, Toledo, Cleveland, Youngstown, Paterson, and New York City.

¨      I-80 has the highest overall traffic volume at the state line (see chart);

¨      If inclement weather and rugged terrain were quantified in this chart, I-80 would rate beyond comparison to the other interstate routes;

¨      Truck traffic for goods movement and public and private services makes I-80 California’s most vulnerable gateway.

¨      I-80 is second in number of trucks only to Interstate-10 (I-10) which serves the Los Angeles Basin;

¨      I-80 is the interstate most often operating at capacity and experiencing congestion;

¨      East-west interstates in Southern California traverse desert terrain, thus closure is almost never a necessity;

 

Appendix 3

 

 

Sierra Gateway Interstate 80 Coalition

 

¨      Nevada County Transportation Commission (NCTC), which includes:

 

§        Nevada County

§        City of Grass Valley

§        Town of Truckee

 

¨      Western States Chapter, American Concrete Pavement Association

 

¨      Sacramento Area Council of Governments (SACOG), which includes:

 

§        El Dorado County                                            Placer County

§        Sacramento County                                          Sutter County

§        Yolo County                                                     Yuba County

§        City of Auburn                                                  City of Citrus Heights

§        City of Davis                                                     City of Lincoln

§        City of Live Oak                                               City of Marysville

§        City of Rocklin                                                 City of Roseville

§        City of Sacramento                                          City of West Sacramento

§        City of Wheatland                                            City of Winters

§        City of Elk Grove                                                            City of Folsom

§        City of Isleton                                                  City of Woodland

§        City of Yuba City

 

¨      Placer County Transportation Planning Agency (PCTPA), which includes:

 

§        Placer County                                                   City of Auburn

§        City of Colfax                                                   City of Lincoln

§        City of Rocklin                                                 City of Roseville

§        Town of Loomis

 

¨      Reno-Sparks Convention and Visitors Authority (RSCVA), which includes:

 

§        Washoe County Commission                         City of Sparks

§        City of Reno                                                     Incline Village

 

¨      Reno-Sparks Chamber of Commerce (RSCC)

 

¨      Truckee Meadows Regional Planning Authority (TMRPA)

 

¨      City of Reno

 

¨      City of Sparks

 

¨       North Lake Tahoe Resort Assn.

¨       Northstar Ski Resort

¨       Squaw Valley Ski Corp

¨       Lake Tahoe Gaming Alliance

¨       Tahoe Vista/Kings Beach

¨     West Shore, Lake Tahoe

 

¨       County of Placer

¨       County of Sierra

¨       County of Nevada

¨       Incline Village

¨       Tahoe City

¨       Alpine Meadows Ski Area

¨       Donner Summit

¨       Town of Truckee

 
Truckee North Tahoe Transportation Management  Association (TNTTMA), which includes;