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National Association of Steel Pipe Distributors

National Association of Steel Pipe Distributors. March 2007 Ray Kuntz Chairman and Chief Executive Officer of Watkins and Shepard Trucking. Highway Congestion 1998 All Vehicles. Highway Congestion 2020 All Vehicles. Congestion Cost: Time Is Money. Investment Needs.

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National Association of Steel Pipe Distributors

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

  2. Highway Congestion 1998All Vehicles

  3. Highway Congestion 2020All Vehicles

  4. Congestion Cost: Time Is Money

  5. 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. 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. 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. 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. 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

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

  11. 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. 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. 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. 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. Toll System Admin Costs

  16. Toll System Debt

  17. Gasoline Revenues Needed

  18. Diesel Revenue Needed

  19. Proposed Six Year Package

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

  21. 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. 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. 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. 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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