National Association of Steel Pipe Distributors

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National Association of Steel Pipe Distributors
March 2007 Ray Kuntz Chairman and Chief
Executive Officer of Watkins and Shepard
Trucking
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Highway Congestion 1998All Vehicles
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Highway Congestion 2020All Vehicles
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Congestion Cost Time Is Money
Texas Transportation Institute Survey Billions 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
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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

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20Year 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

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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

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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

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Toll Road PrivatizationCurrent 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

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Key Players

• MIG Macquarie Infrastructure Group Australia
• Cintra Spanish Construction Firm
• Goldmonsals Financial Advisor
• 20 Million advisory fee for the Indiana Deal

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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

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Highway Funding Analysis

• Present funding shortfall is marginal, but
  getting substantially worse
• Present Bill 286 Billion
• Maintenance-plus Budget 550 Billion
• Federal fuel taxes havent changed since 1993
  inflation has destroyed much construction buying
  power

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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)

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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

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Toll System Admin Costs
Fiscal Year Toll Authority Toll Related Revenue Toll Operations Costs Costs to Revenue Ratio
2004 New Jersey Turnpike Authority 828,919,609 251,389,101 30.3
2005 New York State Thruway Authority 511,200,000 123,822,151 24.2
2004 Ohio Turnpike Commission 211,771,000 46,449,000 21.9
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Toll System Debt
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Gasoline Revenues Needed
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Diesel Revenue Needed
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Proposed Six Year Package
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Recommendation 1

• ATA should continue support for state
  grandfather rights, and make no changes to
  existing laws pertaining to grandfather rights.

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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

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Recommendation 3

• Pursue harmonization of western state LCV
  regulations within the parameters of the FHWAs
  Western Uniformity Scenario Analysis.
• Change maximum trailer length from 48 to 53 for
  LCV operations in the western uniformity states

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Recommendation 4Weight 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

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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)