Mary Peters, a former head of the Federal Highway Administration under Bush, was tapped 'to ensure that America has a state-of-the-art transportation system that meets the needs of our growing economy,' Bush said at a White House ceremony.
If confirmed by the US Senate, she would replace Norman Mineta, 74, a member of the opposition Democratic Party who stepped down in July after five years in office.
Increasing congestion on US highways, railways, airports and seaports is robbing the world's biggest economy of productivity, Peters said.
'Today, our vital transportation infrastructure is showing signs of ageing,' said Peters, who currently works for an engineering firm in her home state of Arizona.
'In some cases, this is the result of systems and structures that are more suited to a bygone era than to the 21st century,' she said.
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