Bush picks former highway chief as transport secretary

By John Crawley

WASHINGTON (Reuters) – President George W. Bush on Tuesday
nominated former federal highway official Mary Peters to be
transportation secretary, choosing a little known but stalwart
Republican to replace the Cabinet’s lone Democrat if confirmed
by the Senate.

Considered a safe pick ahead of what is expected to be a
bruising election season for Republicans, Peters was selected
over prominent but more politically charged candidates,
including Federal Aviation Administration chief Marion Blakey.

If confirmed, Peters would replace Norman Mineta, who left
in July as the longest-serving transportation secretary after 5
1/2 years. Peters would be only the second woman to lead the
Transportation Department in its nearly 40-year history.

Elizabeth Dole, now a North Carolina senator, served as
transport secretary in the mid-1980s.

Mineta spent much of his time dealing with the colossal
impact of the September 11, 2001, hijack attacks on U.S.
aviation — from the brief shutdown of commercial airline
service to the creation of new security measures and the
near-collapse of the domestic airline industry.

Peters led the Federal Highway Administration from 2001 to
2005 after heading up the Arizona transportation department.
She helped Mineta craft the Bush administration’s position on
landmark highway legislation and is an advocate of new
strategies for financing road construction projects.

Her obscurity pales next to Mineta’s brand-name status in
Washington. He honed his sharp political skills during two
decades in Congress and a stint as President Bill Clinton’s
Commerce Secretary.

“Mary Peters knows the legacy she has to live up to at the
Department of Transportation,” Bush said. “She will take this
new post during a time of historic challenges for our economy
and our transportation system.”

Peters said aging transportation infrastructure as well as
increased highway, air and rail congestion are robbing the
nation of productivity. “In some cases this is the result of
systems and structures that are more suited to a bygone era
than the 21st century,” she said.

As highway administrator, Peters favored expanding the
authority of states to toll motorists and supported a greater
role of private-sector investment in highway construction. She
also opposed raising the federal gasoline tax, which accounts
for much of the government’s contribution to state highway
construction projects.

Peters lives in Phoenix and is currently a vice president
at HDR, Inc. an engineering firm. Her planned 2006 run for
Arizona governor foundered last year over questions about her
state residency qualifications after living in Virginia during
her Bush administration tenure.

As transportation secretary, she will also have to address
the politically difficult problems of new funding sources for
modernization of the nation’s air traffic system and
overhauling Amtrak, the troubled passenger rail network.

The Transportation Department has a budget of $61 billion
and 60,000 employees.