Lack of spending on the nation’s infrastructure – airports, public transit, roads and bridges – is an emerging crisis that will compromise the ability of the United States to compete globally, according to a report by the Urban Land Institute and Ernst & Young.

“America is more of a follower and no longer a world leader when it comes to infrastructure,” the report said. “Other countries marshal vanguard strategies and provide the contemporary lessons for developing best practices in public-private finance, intermodal transport and high-speed rail … too often U.S. projects focus on restoration rather than rethinking the model and finding possible efficiencies … there is a tendency to invest in the infrastructure we have instead of the infrastructure we will need.”

The first-of-its-kind report, “Infrastructure 2007: A Global Perspective,” found that when it comes to infrastructure, America is more of a follower and no longer a world leader. Other countries marshal vanguard strategies and provide the contemporary lessons for developing best practices in public/private finance, and public transportation including high-speed rail, the survey said.

Most governments confront significant budget gaps, but recognize the compelling need to establish infrastructure policies and funding solutions in order to sustain and enhance future prosperity and economic growth, researchers found. Despite daunting challenges, inevitable policy stumbles and financing shortfalls, those countries make infrastructure more of a national priority, the study’s authors wrote.

The 69-page study reveals that the United States budgets $112.9 billion, or just less than 1 percent of its gross domestic product, and sidesteps the reality of a ballooning $1.6 trillion deficit for necessary upgrades over the next five years.

In contrast, China spends $160 billion on new infrastructure projects annually; India spends up to 8 percent of its GDP on roads, ports and airport expansion; Japan spends more than 10 percent of its GDP on infrastructure; and Spain budgets more than $120 billion for improvements to roads, rail, ports and airports, with an additional $200 billion earmarked through 2020, the report noted.

Over the next five years, the United States will under-spend on needed infrastructure investment by $1.6 trillion. For the next generation, restoring the Tappan Zee-north in New York City could cost anywhere between $3 billion and $15 billion, the study said, and replacing an old drawbridge in the Big Apple will cost $600 million.

‘A Clear Vision’

The infrastructure report comes on the heels of a ULI survey that found more than 90 percent of state transportation officials said that today’s infrastructure meets most or some of its current needs. However, more than 90 percent also said roads, bridges, tunnels, rail and mass transit will need “much or moderate” improvement to meet future needs.

Researchers note that in Europe, the construction and operation of toll roads has been turned over to private companies since the 1970s. Many airports, as well as schools and hospitals, are already operated by private companies. The new twist has been the raft of investment funds sponsored by global investment banks, private equity firms and institutional money managers looking to place money from pension funds, insurers and high-net-worth clients into infrastructure investments, the study found.

Still, skepticism over how much control should be shifted to the private sector has, so far, kept private investment in check, the report notes. For instance, the survey of transportation planners found that while 37 percent predicted privatization would be a likely source of future funding, 44 percent said it would be unlikely. Seventy-three percent predicted higher user fees as a funding source and 63 percent predicted higher taxes.

Other nations are also way ahead of the United States when it comes to high-speed rail. The varied attitudes toward and approaches to infrastructure investment are reflected in data provided in the report, including the fact that Japan has 1,422 miles of high-speed rail and will build 186 miles more by 2020; China is planning to build more than 1,553 miles of high-speed rail by 2020; and the United States has about 186 miles but has none in the pipeline.

The survey confirmed the U.S dependence upon cars compared with other nations. As of 2000, the most recent data available, there were more than 750 cars per 1,000 people in the United States; in the United Kingdom, just over 500 cars per 1,000 people; in China, less than 50 per 1,000. Two of the 10 most expensive infrastructure projects worldwide involving private investment are in France; the third most expensive is in the United States; none are in China.

Solving the mobility problems in the United States will require more than a greater commitment to infrastructure repair and construction, the report said. In addition to revamping funding mechanisms for construction and operations, long-term solutions must include rethinking land-planning models so they are far less auto-dependent and offer plenty of options for getting from one place to another. If driving continues to be the only practical transportation option in many metropolitan areas, no amount of infrastructure investment will be adequate, the report contends.

“If infrastructure expenditures are comprehensively planned and integrated with regional land use, the lasting economic benefits can be enormous, propelling the nation’s growth for generations,” the report recommends. “Federal and state governments will need to develop a clear vision for policy and integrate programs that link costs to use and which drive efficiencies. Silos must be broken down between multiple layers of state and local road departments, transit agencies, planning boards and housing authorities.”