Source: www.transportation1.org

Truth #1: Truckers and railroaders do not get along.  I sometimes like to pose provocative questions to groups of truckers or railroaders (but not both together) to watch the impassioned discussion that ensues.

Truth #2: Demand for transportation was rising steadily before the recent recession.  Although much of the increase is attributed to rising GDP, growth in VMT must also be attributed to shifts in transportation use.  Increasingly, GDP is made up of services that require fewer VMTs.  Freight (and car) VMTs per capita have steadily increased indicating greater consumption of freight services.

Truth #3: The funds (user fees) collected by all forms of government in the U.S. are not enough to fund road infrastructure.  The recent TRB Special Report 285 and the report by the National Surface Transportation Infrastructure Financing Commission highlight the loss of purchasing power of the all user taxes for road construction and maintenance.

Truth #4: The root cause of our road funding problems is not abuse of the Highway Trust Fund.  Even evil “Mass Transit” may provide capacity by removing cars from highways at a cost cheaper than construction of new lanes.  How many lanes of highway would have to be constructed to replace the Washington Metro?  What would the city look like without it?

Truth #5: Some trucks do not pay the full cost for their highway use.  The book “Road Work” by Small, Winston, and Evans (1989) pointed out that very heavy trucks do not pay the true marginal cost of their highway use.  The primary culprit according to the authors is a user-charge based on fuel use rather than axle weight and miles traveled.  Transportation Research Board Special Report 246 showed much the same thing by comparing several modes of transportation.

Truth #6: Lower cost is not equal to higher efficiency.  For economists, efficiency means getting higher value outputs from a given value of inputs.  While the lower total costs associated with heavier, six-axle trucks are difficult to argue with (with the possible exception of bridge costs), lowering the price of an already underpriced good could be a bad thing for all concerned.  Economists know that price controls, cause shortages because suppliers will refuse to supply at the lower price.  We are facing just such a situation with road infrastructure today.  States are refusing to provide (or maintain) road infrastructure because the revenue received for its use is less the cost to provide it.  In such a situation, lowering the cost still further by permitting slightly more efficient trucks could have the undesired (by some) effect of stimulating increased road use, therefore exacerbating problems with infrastructure financing.

In my opinion, loosening Federal weight restrictions will not occur until usage-based road financing is changed to some scheme that is both accurate and fair.  Such a scheme should be based on the cost of road use.  While many truckers have asked for increased fuel taxes to cover the cost of maintaining roads, few have advocated an approach like Oregon’s experimental VMT tax or Germany’s VMT tax.  Should my colleague’s Mercedes Benz diesel pay the same fuel tax as an eighteen wheeler?  Should a straight truck pay the same tax as a rocky mountain double?

Yes, railroads protest too much, but permitting heavier trucks is no panacea for the highway system either.  Economic sustainability comes from having prices reflect true costs, not from cheaper prices.  Any change that accomplished the later without the former will only make the situation worse.

It is now time for me to step out of the room.

Pete Swan is assistant professor of Logistics and Operations Management at the Penn State Harrisburg School of Business Administration. He is a regular contributor of research, commentaries and papers on freight transportation industry issues and has been a member of the Transportation Research Board (TRB) since 2002. He is currently chair of the TRB’s Freight Systems Group in addition to his academic responsibilities for Penn State.

A day does not go by in Washington without legislation intended to fix one problem ultimately affecting a host of other issues. It’s the principle of unintended consequences, and a fact of life in our complex world where everything has become so interconnected. Nowhere is this more evident than the transportation industry, which touches our economy, our environment and our infrastructure in virtually innumerable ways. It’s like the lyric from the popular children’s song that says “The knee bone’s connected to the thigh bone ...” Trucking, it seems, is connected to everything.

One example of how one issue can have a ripple effect on many others is truck productivity. The crux of the issue is truck size and weight, a debate that’s been raging for years in Washington and throughout the transportation sector. Recent forecasts estimate that freight volumes will increase nearly 28 percent by 2018, a growth curve that — absent any change in current size and weight restrictions — will require several million more trucks on America’s highways to meet demand. “More jobs, now that’s great!” you might think … until you consider the interconnected, unintended consequences: more traffic congestion and lost productivity. Increased fuel consumption and higher carbon emissions. The effect of more trucks putting more miles on a highway infrastructure already strained to the breaking point. The knee bone’s connected to the thigh bone ...

Many in the industry think the solution is clear: improve truck productivity. And there is a precedent — our counterparts in Europe, Canada and Australia have already done that and are reaping significant benefits. There’s plenty of research to support it. A 2008 American Transportation Research Institute study found that aligning our truck size and weight with the higher international standards would lead to great gains in productivity, as well as reductions in carbon emissions and a better shot at competing effectively in the global marketplace. The American Trucking Associations (ATA) has produced a list of recommendations — including raising the allowable weight of six-axle vehicles to 97,000 pounds and permitting 33-foot trailer combinations in certain states, and expanding the use of triple trailers where it is safe and practical to do so. We hope Congress will seriously consider them. With the projected rise in freight volumes, maximizing the efficiency of our transportation infrastructure has never been more important.

One state that may prove to be a good test bed is Maine. The Fiscal Year 2010 Transportation Appropriations bill recently signed into law by President Obama includes a provision to create a one-year pilot project to study the effects of eliminating the 80,000-pound vehicle weight limit on Maine’s federal highways. Allowing heavier trucks for a year will give researchers a chance to assess the impact on the much-debated areas of safety, commerce and road wear and tear.

It will be interesting to see how this experiment will educate the debate and, ultimately, the policy decisions which result. If the experience of our international colleagues is any guide, the consequences of more productive trucks will bring measurable benefits — for highway safety, the economy, our environment, congestion, business efficiency, energy policy and many other issues. The knee bone is connected to the thigh bone ...