The Energy Department is predicting gas prices will climb this year. According to a recent forecast report, the increase in gasoline consumption combined with the seasonal changeover to reformulated gasoline and rising crude oil prices, should push average retail prices for regular grade to about $1.33 per gallon in the next several months. The reports says "Still, we cannot rule out even higher prices, including possible price spikes similar to last year's at the regional level, if the seasonal switch to reformulated fuels is complicated by refinery and/or pipeline problems." In 2003, pump prices are projected to increase by about 13 cents per gallon over the 2002 average, with almost all of the gain due to the expectation of higher crude oil prices.

The 2003 budget from the White House eliminates $8.6 billion from the highway construction and maintenance budgets, which has much of the transportation industry and Congress on alert. The leaders of the House Appropriations Committee have countered by introducing the Highway Funding Restoration Act to increase fiscal 2003 highway funding by $4.4 billion over the administration's budget proposal, with funding coming from the Highway Trust Fund.

A new study found that 23% of major roads in the nation's largest urban areas need immediate repair or reconstruction. The Road Information Program report also concluded that motorists in the nation's major cities are paying an average of $358 per motorist in extra vehicle operating costs to drive on roads in need of repair. The report said the best way to reduce costs is to make needed repairs and improvements to the roads.

The Teamsters Union and the Brotherhood of Locomotive Engineers (BLE) are considering a merger that would create "a seamless transportation union" of rail-trucking industry workers and give the BLE increased bargaining muscle. The BLE's governing body took a step toward merging or affiliating with the Teamsters Union by authorizing its top three leaders to explore the possibilities of a combination. The BLE's 38,000 members would gain clout in joining with the 1.4 million members of the International Brotherhood of Teamsters.

The National Industrial Transportation League will collaborate with the Alliance for Rail Competition under a new joint venture. The Coalition for Rail-to-Rail Competition will be aimed at providing rail shippers with a coordinated and effective effort to deregulate the railroad industry and enhance competition among rail carriers. Other shipper groups are expected to join the coalition.

Metals logistics service provider ADS Logistics has completed a corporate restructuring, merging its subsidiary companies and operating entities into one new company. ADS operating divisions now include Area Transportation, Roll & Hold Warehousing & Distribution, Integrated Solutions, and Western Intermodal Services. Prior to the restructuring, these businesses were owned by Alternative Distribution Systems.