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American Trucking Associations National Association of Steel Pipe Distributors March 2007 Ray Kuntz Chairman and Chief Executive Officer of Watkins and.

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Presentation on theme: "American Trucking Associations National Association of Steel Pipe Distributors March 2007 Ray Kuntz Chairman and Chief Executive Officer of Watkins and."— Presentation transcript:

1 American Trucking Associations National Association of Steel Pipe Distributors March 2007 Ray Kuntz Chairman and Chief Executive Officer of Watkins and Shepard Trucking

2 American Trucking Associations Highway Congestion 1998 All Vehicles

3 American Trucking Associations Highway Congestion 2020 All Vehicles

4 American Trucking Associations Congestion Cost: Time Is Money Texas Transportation Institute SurveyBillions of dollars Estimates of delay and fuel waste 63.1 Cities not included in survey estimates 12.8 Productivity losses 38.0 Unreliability losses 38.0 Truck cargo delays 3.8 Safety and environmental costs 12.6 Total highway congestion costs 168.3

5 American Trucking Associations Investment Needs Total annual average highway and transit funding shortfall –$55 billion to maintain –$122 billion to improve Federal annual average highway and transit funding shortfall –$23 billion to maintain –$48 billion to improve

6 American Trucking Associations 20–Year Interstate Investment Needs Maintain current congestion levels –$7.3 billion more avg. annual –21-22 cents federal diesel tax increase Improve congestion levels –$8-10 billion more avg. annual –23-31 cents federal diesel tax increase Constant FY2000 dollars Assumes 90% federal share

7 American Trucking Associations Freight Bottlenecks FHWA study identified top 200 highway freight bottlenecks Cost trucking industry more than 243 million hours annually Direct financial cost of approximately $7.8 billion Highway bottlenecks account for 40% of congestion

8 American Trucking Associations Congestion Costs Growing Faster than GDP Since 1982, the cost of congestion has grown at 8 % per year, more than double the rate of growth of the economy In 20 years, continued growth at this rate would bring the cost of congestion to $890.5 billion Equal to 4.3 % of GDP

9 American Trucking Associations Toll Road Privatization Current Lease Agreements Chicago Skyway –Macquarie-Cintra –99 years –$1.83 billion – used to retire city debt Indiana Toll Road –Macquarie-Cintra –75 years –$3.8 billion – used for road and economic development projects

10 American Trucking Associations Key Players MIG – Macquarie Infrastructure Group Australia Cintra – Spanish Construction Firm Goldmonsals – Financial Advisor –$20 Million advisory fee for the Indiana Deal

11 American Trucking Associations Indiana Deal State received $3.8 billion Consortium 75 year return –Estimated as high as $11.38 billion Who pays the difference? –$7.58 billion

12 American Trucking Associations Highway Funding Analysis Present funding shortfall is marginal, but getting substantially worse Present Bill: $286 Billion Maintenance-plus Budget: $550 Billion Federal fuel taxes haven’t changed since 1993; inflation has destroyed much construction buying power

13 American Trucking Associations Highway Funding Analysis Existing US DOT initiative toward privatization counter to approved policies that mandate: Safety Seamless Networks Access & Mobility Global Connectivity Public Participation Ignores own research (2 out of 3 people oppose tolls without direct, proven benefits)

14 American Trucking Associations Highway Funding Analysis Alternative finance programs harm rural corridors/counties by favoring VMTs over strategic access Toll administration costs dramatically exceed the cost of fuel tax administration Privatized toll systems will require dramatic toll increases…

15 American Trucking Associations Toll System Admin Costs Fiscal YearToll Authority Toll & Related Revenue Toll Operations Costs Costs to Revenue Ratio 2004 New Jersey Turnpike Authority$828,919,609 $251,389, % 2005 New York State Thruway Authority$511,200,000 $123,822, % 2004 Ohio Turnpike Commission$211,771,000 $46,449, %

16 American Trucking Associations Toll System Debt

17 American Trucking Associations Gasoline Revenues Needed

18 American Trucking Associations Diesel Revenue Needed

19 American Trucking Associations Proposed Six Year Package

20 American Trucking Associations Recommendation 1: ATA should continue support for state grandfather rights, and make no changes to existing laws pertaining to grandfather rights.

21 American Trucking Associations Recommendation 2: Support 53’ as the federal maximum trailer length on the National Network. Do not allow states to limit trailer length to less than 53’ * Support 53’ maximum trailer length limit - States that allow trailers longer than 53’ must continue to allow them * Increase minimum federal trailer length from 48’ to 53’

22 American Trucking Associations Recommendation 3: Pursue harmonization of western state LCV regulations within the parameters of the FHWA’s Western Uniformity Scenario Analysis. Change maximum trailer length from 48’ to 53’ for LCV operations in the western uniformity states

23 American Trucking Associations Recommendation 4: Weight Increase for Single-Trailer Trucks Maintain current federal axle weight and bridge formula limits, but lift the 80,000 lbs CVW cap No change in ATA policy required Single-trailer trucks with a GVW of 97,000 lbs Six axles, including a tridem axle on the rear of the trailer Maximum weight on the tridem axle limited to 51,000 lbs

24 American Trucking Associations Recommendation 5: Support Limited LCV Operations Beyond the Western Uniformity Region Upon Executive Committee approval and on a case-by-case basis, support local, state and regional efforts to improve truck productivity and expand LCV routes that meet appropriate safety standards. Lift the 80,000 lbs GVW cap for STAA doubles (double 28.5’ trailers) Allow double trailers longer than 28.5’ (e.g.double 33’ trailers)


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