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STATEMENT<br />

OF THE DIRECTOR<br />

AS DIRECTED BY THE INTERMODAL SURFACE TRANSPORTATION<br />

EFFICIENCY ACT (ISTEA), THE BUREAU OF TRANSPORTATION<br />

STATISTICS (BTS) PREPARES AN ANNUAL COMPREHENSIVE ASSESS-<br />

MENT OF THE NATION’S TRANSPORTATION SYSTEM AND THE STATE OF<br />

TRANSPORTATION STATISTICS. THIS DOCUMENT IS THE THIRD SUCH<br />

ANNUAL REPORT TO THE PRESIDENT AND CONGRESS.<br />

Transportation, by moving goods to<br />

where they are required <strong>and</strong> people to<br />

where they wish to go, is a vital component<br />

<strong>of</strong> all products <strong>and</strong> services produced<br />

in an economy. By exp<strong>and</strong>ing the<br />

markets for goods <strong>and</strong> labor, transportation<br />

promotes regional specialization,<br />

large-scale production, interregional <strong>and</strong><br />

international trade, personal mobility,<br />

<strong>and</strong> social interactions. Consequently, in<br />

a large <strong>and</strong> affluent industrialized country<br />

such as the United States, transportation<br />

is a vast enterprise.<br />

The U.S. transportation system comprises<br />

an extensive physical network <strong>of</strong><br />

highways, railroads, transit systems,<br />

pipelines, waterways, ports, <strong>and</strong> airports,<br />

in addition to the industries that produce<br />

<strong>and</strong> maintain the vehicles (e.g., motor<br />

vehicles, ships, planes, bicycles) that use<br />

the physical network; the providers <strong>and</strong><br />

arrangers <strong>of</strong> for-hire transportation services;<br />

<strong>and</strong> the agencies that administer<br />

transportation programs. Transportation<br />

is thus a broad <strong>and</strong> important economic<br />

sector, accounting for about 11 percent<br />

<strong>of</strong> the gross domestic product (GDP) in<br />

1994, roughly comparable to health (14<br />

percent), food (12 percent), <strong>and</strong> education<br />

(7 percent).<br />

Part I <strong>of</strong> this report surveys the state<br />

<strong>of</strong> the transportation system in the<br />

United States. It opens with an assessment<br />

<strong>of</strong> the nature, patterns, <strong>and</strong> trends<br />

in the use <strong>of</strong> the transport system for<br />

passenger <strong>and</strong> freight movements, as<br />

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