U.S. industry presses for transportation funds

American shippers and transportation providers are willing to financially contribute to upgrading the nation’s ability to move freight efficiently, as long as fees are equitable and collected by the government specifically for that purpose.
  

“Target understands that as a user of the system, we will have to pay increased user fees in order to maintain and expand current infrastructure,” said Rick Gabrielson, the retail giant’s director of international transportation, to the Senate Commerce Committee’s subcommittee on surface transportation and merchant marine infrastructure, safety and security, on Thursday.
  

“However, we strongly believe that some revenue methods fall disproportionately on the retailer and we hope that an all inclusive national freight policy would focus on raising revenues on all the users of the system,” he said.
  

“We believe a small, ‘thin’ fee broadly assessed across all freight would raise substantial revenue for infrastructure, with little impact on the consumer, while remaining neutral to the market for goods movement transportation,” Larry “Butch” Brown, executive director of Mississippi Department of Transportation, on behalf of the Coalition for America’s Gateways and Trade Corridors, told the subcommittee.
  

Brown pointed out the possibility that a 1 percent fee on all bills of lading could raise the $7 billion to $10 billion needed for infrastructure projects, as estimated by the Eno Foundation.
  

“In addition, because a bill of lading fee effectively measures ‘freight consumption’ more accurately than many other options discussed, we would recommend this receive serious consideration,” he said.
  

During the subcommittee hearing, Maersk Inc. Chairman John P. Clancey urged Congress and the Obama administration to move ahead with an increase in the gas tax as recommended last year by the National Surface Transportation Revenue and Policy Commission. The funding mechanism, which has been in place for years, is supported by a number of large transportation groups, such as the American Trucking Associations and National Industrial Transportation League. Clancey noted that a higher fuel price would also encourage fuel efficiency and less driving.
  

“This should be an easy one for Congress to get behind and it is difficult to understand the reluctance to step up and get this tax done now,” he said.
  

Brown said fees, whether from a per bill of lading fee, a portion of the federal gas tax, or other sources, collected for the nation’s transportation infrastructure improvement should be managed through a Freight Trust Fund (FTF).
  

“Contributions to support the new freight program should come from one or more new sources in a way that will fairly share the burden of cost for system development and maintenance among users/beneficiaries commensurate with their use of facilities,” Brown said.
  

“All freight users of the freight transportation system should be required to contribute, and revenue streams should be as diverse as practicable to ensure FTF income is resistant to economic cycles and will grow to keep pace with demand for infrastructure and inflation,” he said.

 

(Source: American Shipper)