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Trucking Industry Perspectives on Transportation Funding

Trucking Industry Perspectives on Transportation Funding. Greg Owen Head Coach Ability/Tri-Modal Talking Freight – December 16, 2009. Top Five Trucking Industry Issues. Based on ATRI’s 2009 survey of industry: The Economy Government Regulation Fuel Issues

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Trucking Industry Perspectives on Transportation Funding

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  1. Trucking Industry Perspectives on Transportation Funding Greg Owen Head Coach Ability/Tri-Modal Talking Freight – December 16, 2009

  2. Top Five Trucking Industry Issues Based on ATRI’s 2009 survey of industry: • The Economy • Government Regulation • Fuel Issues • Congestion/ Highway Infrastructure • Hours of Service

  3. Key Trucking Realities • Deregulated? • HOS/Equipment/Routing/Insurance • Highly Competitive/ Low Profit Margins • 640K Carriers with U.S. DOT; <100K in last 5 years • Critical to US Economy • 68% of Tonnage; 86% of Revenue • 6%-7% of GDP • 7% of vehicles; 15.5% of VMT

  4. Transportation Funding Issues • Congestion is worsening • Vehicle miles traveled are expected to increase more than 72% by 2025 • Transportation system investment is needed: • Research suggests the need for over $100B annually simply to “maintain” infrastructure up to $200B annually by 2015

  5. Proposed & Existing Highway Funding Options • Motor Fuels Tax • Tolling • Highway Privatization w/ Tolling • Mileage Based Tax All Options Will Draw Revenue from Trucking

  6. Trucking Perspective on the Motor Fuels Tax

  7. Motor Fuels Tax Realities • No increase in federal motor fuel tax since 1993 • Inflation has decreased motor fuel tax purchasing power >28% • Tax exemptions reduce user-based revenues • Highway user fees diverted to non-highway uses • Project “earmarking” diverts $$ from critical projects

  8. Trucking Perspective on Tolling

  9. Tolling Efficiency

  10. Safety Impacts of Toll Diversion • Between 1995 and 1999, Ohio Turnpike Authority increased tolls on Ohio Turnpike by 82% • As a result, commercial traffic diverted to alternate, non-tolled roads • High profile crashes (fatalities) on alternate routes led to rollback in tolls

  11. Trucking Perspective on Privatization

  12. Privatization Issues • Non-Compete Clauses Hurt Adjoining Systems • Pricing is Uncertain • Interstate System is Critical for U.S. Economy • Privatization Success Stories? • Macquarie Financial Troubles..

  13. Trucking Perspective on Mileage-Based Tax

  14. Mileage Tax • Implementation will be costly • Enforcement appears difficult • Technology not robust enough for lane/facility differentiation • Overall, feasibility is questionable

  15. Summary • HTF not meeting needs • Fuel tax most efficient • Tolls inefficient & create safety impacts • Privatization negatively impacts seamless transportation network • Mileage-based tax is not possible in the short-run • Balkanization of system harms U.S. global competitiveness

  16. The Bottom Line: Motor Fuel Tax is an Efficient Way to Collect Revenue… • Ultimate user fee; social equity compass • Cost to collect federal motor fuel tax approximately 0.2 percent of revenue collected • At the state level, cost of collecting motor fuel tax 1-2 percent • A tax increase would be inexpensive and quickly implementable

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