P.M. Executive Briefing - Mar. 1
This Afternoon's Headlines:
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Surprise Opposes Trucking Corridor
The route for the CANAMEX Corridor, a planned truck highway between Mexico City and Edmonton, Alberta, is mostly plotted except for where it runs through Maricopa County, Ariz., and one of the proposed routes through the county is being opposed by the city of Surprise.The city council ordered a resolution from the city attorney, to be sent to the state and county transportation departments, saying Loop 303 should not be included in the truck route. The state Transportation Department and the Maricopa Association of Governments are finishing up a study of Loop 303 and seven other possible routes for the truck corridor.
Report: U.S. Customs Tougher on Private Couriers Than Postal Service
According to a report from the Air Courier Conference of America, a study conducted by consulting firm Wirthlin Worldwide found that U.S. Customs inspected only 6% of shipments entering the United States via the Postal Service and 90% of those handled by Federal Express or United Parcel Service.The group said the difference "creates a huge competitive disparity for private carriers, costs the American taxpayer, and jeopardizes the enforcement of narcotics and money-laundering laws."
Customs said it is able to perform proper processing on more of private couriers' shipments than USPS shipments due to the private couriers' automation and advance documentation; another hurdle is the fact that the USPS does not have to pay the costs of processing the international mail. But the agency said the issue should be addressed by holding the USPS to higher standards rather than holding the private couriers to lower standards. Journal of Commerce Online (03/01/00); Lucentini, Jack
Car Tolls Doubled to $2 on Two Bridges
The Tacony-Palmyer and Burlington-Bristol Bridges over the Delaware River between Pennsylvania and New Jersey got higher tolls Wednesday, with truck tolls going up to $4.50 an axle and car tolls to $2.The Burlington County (N.J.) Bridge Commission said it made the rates for trucks in line with those on four Delaware River Port Authority Bridges, although the new car toll is lower than that on the other bridges, because it did not want its two bridges to attract truck traffic by offering lower tolls. This decision was due to concerns about bridge wear caused by trucks. Philadelphia Inquirer Online (03/01/00); Gambardello, Joseph A.
Auto Club Releases More Studies to Try to Derail Gas Tax
The American Automobile Association on Tuesday released two studies saying the Oregon referendum Measure 82, which would raise the gas tax and impose a diesel tax while scrapping the weight-mile tax, would save large trucking firms about $50 millions while costing motorists an extra $100 million annually.The coalition supporting the ballot measure had sued AAA, saying the auto club's radio advertisements against the measure were inaccurate and pointing to a Legislative Revenue Office report saying heavy trucks would pay more than their share of road wear if the measure passes.
The AAA's position has been that the weight-mile tax ensures that trucks cover their share of the expenses. The two studies released by the AAA were conducted by economists at Portland State University and Willamette University; the president of the auto club's Oregon-Idaho chapter said the reports demonstrate that motorists would take over the trucking firms' tax burden. Associated Press (03/01/00); Cain, Brad
MAN's Acquisition of UK's ERF Cleared by EU
The European Commission okayed the acquisition of ERF, a U.K. truck manufacturer, by MAN Nutzfahrezeuge, saying there were no competition problems posed by the plan. AFX European Focus (03/01/00)Rail Customers Demand Relief
Rail-reliant shippers upset about the problems experienced by Norfolk Southern and CSX since the Conrail split are requesting that Congress pass legislation favoring more competition, bringing about lower rates and better service.Many shippers in the scrap recycling, plastics, and chemical industries are captives of the railroads because shipping by truck is too expensive. Some, like Westvaco, are turning more to truck transportation due to the railroad problems.
Association of American Railroads spokesman Tom White said captive shippers have to pay more so rates can be lower for shippers who could switch to other means of transportation. He also said shippers' use of trucking shows there is no rail monopoly, particularly because
ailroads carry a greater percentage of U.S. freight by ton mile yet receive a far lower percentage of transportation revenue than trucking does.
Shippers should not expect relief from Congress because the eight bills supporting the shippers are in committee and are not expected to move on, said Fritz Kahn, former Interstate Commerce Commission general counsel.
White argues the time since the 1980 deregulation has seen rail rates drop 25% – or 50% when adjusted for inflation. Kahn claims the rate cuts were due to less union labor. Roanoke Times (02/29/00) P. A6; Caliri, Loi
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