INTERNATIONAL
SYMPOSIUM ON ROAD
PRICING
Darrin Roth
American Trucking
Associations, Inc.
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 Interstates
Support the concept of voluntary
tolls…however, many companies distrust
states, toll authorities
Believe voluntary tolls may eventually become
mandatory
Only way to attract significant number of
trucks is to allow productivity improvements
History of unaccountable toll authorities
DOUBLE TAXATION
Oppose double taxation
Already pay state, federal highway user fees for
use of facility
True user fee would charge true cost, with
revenues spent exclusively on facility
improvements
Double 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 service
Operations
Reasonable 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
customers
No incentive for shippers to change delivery
times
Most truckers schedule around rush hour,
avoid congested roads without pricing
VALUE/CONGESTION
PRICING
Shippers unlikely to change
pickup/delivery hours even with a
surcharge
Employee overtime pay cost-prohibitive
Interruption 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 Virginia
STAR 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-81
Fluor Virginia
2 new lanes, all lanes, all vehicles tolled
Fluor’s own study showed at 17 cents per mile for
trucks, 5 cents per mile for cars:
85% of local passenger and commercial traffic
diverts
35% of long-distance commercial traffic diverts
45% 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
Safety
Generates additional VMT
Accident rates on alternate routes at least 4
times higher than Interstates
More fuel burned as VMT, congestion
increases
Quality of life decreases as truck traffic
diverts to roads in populated areas
Additional costs to lower-order roads
Economic costs
GERMAN ROAD PRICING
Many technical challenges
Privacy concerns more pronounced in U.S.
U.S. requires more extensive infrastructure
because of better-developed road system
Extremely expensive
On-board units cost 500 Euros each
Assuming $500 cost, retrofitting = approx.
$1.5 billion, annual cost to install in new
vehicles = $200 million
TOLLS WE CAN SUPPORT
Reason Foundation truck lanes
Trans-Texas Corridor
Southern California truck lane proposal
FAST Lanes
HOT Lanes on existing HOV lanes
MUST BE VOLUNTARY, MUST HAVE NON-
TOLL ALTERNATIVE
CONCLUSIONS
Trucking companies will always favor fuel
tax increase over tolls
Easier to pass on
Lower administrative costs
Technology allows for cost-efficient
evasion of tolls
Mandatory tolls reduce industry
productivity more than fuel tax increases
unless equipment productivity increases