Trillion Dollar Transportation Infrastructure - Catapulting Growth
Using Under-Utilised Airspace and Assets Benefit Us All
Thank you to everyone for reading and those who contributed. I hope you enjoy this weeks article. jonathan@skytrades.io
Transportation is one of the great levers of growth in an economy. It gives opportunities to improve connectivity, stimulate economic activity, rebuild or leapfrog old infrastructure, reduce emissions, create good-paying jobs, and boost innovation.
Establishing a large-scale public works program in the United States to construct vital infrastructure has gained significant popularity in 21st-century politics. This has been solidified into law through the Bipartisan Infrastructure Law (BIL). BIL allocates nearly $1 trillion dollars for expenditure between 2022 and 2026, with over $500 billion designated for transportation projects.
Among these allocations, $66 billion is earmarked for mainline rail development, while $39 billion is designated for other public transit initiatives (National Association of Counties 2022). Additionally, when considering the customary five-year appropriations, the budget allocates between $91 and $108 billion for non-mainline public transit projects. The United States has among the highest transit infrastructure costs in the world so air mobility needs to be looked at more closely to compound economic benefits.
Taking to The Skies
There are several ways we can use the skies above our heads for transportation. We have not even explored a fraction of the skies’ utility. Everything from Unmanned Aerial Vehicle (UAVs) to electronic Verticle Take off and Landing vehicles (eVTOLs) and jet packs.
The infrastructure required for these innovative technologies is different and largely less intrusive than traditional transportation requirements and we would get more bang for our buck.
Expenses are escalating across regions. In places like Seattle, Los Angeles, Toronto, Sydney, Singapore, Hong Kong, Melbourne, and the Bay Area, there is a growing body of evidence indicating that the expenses for rapid rail projects in the United States and other English-speaking nations will surpass $1 billion per kilometre, even outside of New York. It’s time to look up.
Drone Infrastructure
There are different types of drones, offering solutions to many everyday problems. They range from smaller drones delivering packages, such as food and medicines to blood and organs. Larger cargo drones can deliver bigger payloads across geographic regions. Each has its place and infrastructure requirements.
Small Delivery Drones
It depends on the type of drone but the payloads range from 1 Kg - 3.5 Kg and the distance for a round trip is up to 12 miles, in general. In the case of a number of drone companies they use charging pads that the drones sit on, charge and then autonomously take off and land so areas for this infrastructure is required.
There are drones that require batteries to be changed during delivery days to extend their use. This requires an area to charge the battery and change it. There are also packaging hubs which are being used to pick up packages or in some circumstances, drone companies are partnering with malls or supermarkets using their rooftops so they can offer a selection of goods to consumers.
The need for maintenance is often overlooked and hubs for this are also required to maintain both efficiency and safety standards set out for the drones. This all opens the door for the growth of drone infrastructure on people’s property, which would enable longer drone journeys and offer new income streams to the property owners.
Tracking Drones
There is a requirement for drones to broadcast Remote Identification (RID) information so they can be tracked. This requirement mandates the transmission of a unique identification number, ownership and GPS position data for both the aircraft and control station, as well as other essential information.
The FAA has an extension granted to drone pilots. They now have a six-month grace period, until March 16, before facing consequences for non-compliance with the new regulation. Most manufactured drones come equipped with the necessary broadcasting capability but individuals operating homebuilt or older drone models must retrofit them with approved broadcast modules to adhere to the updated rule.
Cargo Drones
These can carry up to 350 kg flying distances in excess of 2,000 km at a projected cost of $5/Kg , before the property owners payments are factored in for the use of their airspace. A network of drone ports and mobile-controlled cargo systems integrate into supply chains that can enable same-day delivery to the most remote areas of the world.
Cargo drones collecting large payloads from the ports and transporting them to smaller regional and urban centres for distribution by smaller drones would be the vision of an integrated system. These smaller hubs can be built on property that can accommodate the quick distribution of goods to their final destination. This is all powered by the property owners who control the air rights allowing access to the low-altitude airspace for the drone companies, using SkyTrades to coordinate the airspaces supply and demand.
Vertiports Infrastructure
Electric Verticle Take off and Landing vehicles (eVTOLs) are equipped with wings instead of traditional rotor blades and can take off and land vertically, eliminating the need for runways. eVTOLs primary use case is for flying taxis currently, offering quick transportation within congested cities.
The infrastructure requirements for eVTOLs are vertiports (helipads) which are more cost-effective to build than conventional transport hubs. They are environmentally friendly, utilising batteries and cleaner fuels like hydrogen. Docking, charging and maintaining eVTOLs can be done on designated properties.
Although initially expected to have human pilots, the European Union Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA) anticipate a transition to remote piloting and, eventually, autonomous flight for air taxis as technology advances. Vertiports will integrate with existing transportation systems. These developments will reshape urban mobility and generate substantial economic benefits.
The company, Urban-Air Port, plan to establish over 200 vertiports globally, including locations in London, Los Angeles, Australia, South Korea, France, Germany, Scandinavia, and South East Asia. Spanish transport infrastructure firm Ferrovial is also committed to constructing more than 25 vertiports in the UK and over 10 in Florida, USA. Every vertiport will be on a property whose owner has granted permission for the vertiport to be there.
Researchers project that the advanced air mobility market could potentially generate 200,000 new jobs in the European Union and the United States.
It is clear that an integrated system of transportation is the best outcome for everyone. The funds being put into infrastructure upgrades and new projects are very welcome. In our rush to upgrade old systems and optimise them, we should look to see if what we have done in the past is right for the future.
Air mobility has the power to transform our lives in very meaningful ways. It is cheaper, more environmentally friendly and quick in many cases. Cargo drones and smaller delivery drones can take trucks and cars off the road and free up our congested highways. This will also reduce the amount of road deaths.
We have a lot of available space in the sky. We have a well-established property and legal system for property owners to grant the use of their low-altitude airspace through SkyTrades, and be the force multiplier for growth in our economies. It’s time to look up.
For more information on air mobility and how low-altitude air rights holders are the key to scaling the category please contact me jonathan@skytrades.io SkyTrades
