Darrin Roth

American Trucking Associations, Inc.

INTERNATIONAL SYMPOSIUM ON ROAD

PRICING

WHAT IS ATA?

National representative of the trucking industry

Diverse membership – size, sector, geography

Federation of associations with 37,000 members

MANDATORY VS. VOLUNTARY

Oppose tolls on existing InterstatesSupport the concept of voluntary tolls…however,

many companies distrust states, toll authoritiesBelieve voluntary tolls may eventually become

mandatoryOnly way to attract significant number of trucks is

to allow productivity improvementsHistory of unaccountable toll authorities

DOUBLE TAXATION

Oppose double taxationAlready pay state, federal highway user fees for use

of facility True user fee would charge true cost, with revenues

spent exclusively on facility improvementsDouble taxation eliminates philosophical argument

that a toll is the most equitable form of taxation Not politically realistic that states would

refund money

REVENUE EXPENDITURE

Revenues spent only on Debt serviceOperationsReasonable return on investment

Revenues should not be spent on projects unrelated to the facility

Tolls should be eliminated once bonds are retired and integrated into state highway program – not realistic

VALUE/CONGESTION PRICING

Passenger and commercial vehicles react differently to pricing

Much research on passenger effects; small body of research on commercial, mostly related to benefits of less congestion

VALUE/CONGESTION PRICING

SHIPPERS SCHEDULE DELIVERIES!!!! Most trucking companies either don’t pass

toll costs on or spread them around to all customersNo incentive for shippers to change delivery

timesMost truckers schedule around rush hour,

avoid congested roads without pricing

VALUE/CONGESTION PRICING

Shippers unlikely to change pickup/delivery hours even with a surchargeEmployee overtime pay cost-prohibitiveInterruption to supply-chain management

could result in higher cost than surcharge

VALUE/CONGESTION PRICING

Vilain/Wolfrom Study “Value Pricing and Freight Traffic: Issues

and Industry Constraints in Shifting from Peak to Off-Peak Movements,” 2000

Interviewed 50 trucking companies in NYC area to gauge reactions to value pricing

Found toll costs are a relatively insignificant factor in determining travel choices

Predicted “modest” changes in behavior

TRAFFIC DIVERSION

Diversion of traffic not well known or understood

Research generally done on front end or when major rate increase proposed to determine revenue impacts

Social, economic impacts must be examined when a new toll road or higher rates are proposed

TRAFFIC DIVERSION - I-81

2 proposals for tolling Interstate 81 VirginiaSTAR Solutions

4 tolled truck-only lanes, existing lanes toll-free, reserved for cars

Kornhauser study determined 50% diversion with 20 cents/mile toll rate

TRAFFIC DIVERSION - I-81Fluor Virginia

2 new lanes, all lanes, all vehicles tolledFluor’s own study showed at 17 cents per mile for trucks,

5 cents per mile for cars:85% of local passenger and commercial traffic diverts35% of long-distance commercial traffic diverts45% of long-distance passenger traffic diverts

Survey of 34 VA-based trucking companies found that 91% of respondents would use alternate routes to avoid a toll

Diversion – Ohio Turnpike

Recent study found significant diversion from Ohio Turnpike following 82% toll rate hike

Vehicles using congested alternate routes instead of free-flowing turnpike

70% of trucks on one arterial using road solely to avoid toll

Other local roads 30-50% truck traffic

Social Impacts of Traffic Diversion

SafetyGenerates additional VMTAccident rates on alternate routes at least 4

times higher than InterstatesMore fuel burned as VMT, congestion increasesQuality of life decreases as truck traffic diverts

to roads in populated areasAdditional costs to lower-order roadsEconomic costs

GERMAN ROAD PRICING

Many technical challengesPrivacy concerns more pronounced in U.S.U.S. requires more extensive infrastructure

because of better-developed road systemExtremely expensive

On-board units cost 500 Euros eachAssuming $500 cost, retrofitting = approx.

$1.5 billion, annual cost to install in new vehicles = $200 million

TOLLS WE CAN SUPPORTReason Foundation truck lanesTrans-Texas CorridorSouthern California truck lane proposalFAST LanesHOT Lanes on existing HOV lanes

MUST BE VOLUNTARY, MUST HAVE NON-TOLL ALTERNATIVE

CONCLUSIONS

Trucking companies will always favor fuel tax increase over tollsEasier to pass onLower administrative costs

Technology allows for cost-efficient evasion of tolls

Mandatory tolls reduce industry productivity more than fuel tax increases unless equipment productivity increases