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Impacts of Pricing on Interurban Freight Transportation Robert Poole, Reason Foundation Tony Wilson, National Transport Commission, Australia Darrin Roth, American Trucking Associations Andreas Kossak, High Commission Financing the Federal Transportation Infrastructure, Germany TOLL TRUCKWAYS: USING PRICING TO FINANCE under state laws as of 1991. Thus, higher-productivity NEW GOODS-MOVEMENT INFRASTRUCTURE LCVs operate only on selected western Interstates and a few eastern turnpikes and toll roads. Robert Poole The Reason Foundation's researchers propose that LCVs be allowed to operate on new, barrier-separated heavy truck The United States faces a serious shortfall in highway lanes that would be added to selected Interstate routes, gen- investment as fuel taxes fail to keep pace with inflation, erally to fill in missing links in the fragmentary LCV net- increased fuel economy, and use of alternative fuels. work or to extend that network to new destinations. Trucks Trucks deliver 90% of the value of U.S. freight, and would be charged tolls to use these new truckways and there is little likelihood of a significant mode shift to rail would be allowed to operate as LCVs only on these special for a variety of reasons. The problem addressed in this lanes (in states covered by the LCV freeze). presentation is how to expand long-haul highway Simulation modeling was carried out on the basis of a capacity to meet the needs of goods movement. heavy-duty pavement design, a model of pavement wear Historically, the trucking industry has opposed any and maintenance, and a variety of scenarios, including expansion in the scope of tolling on the grounds that both standard 18-wheel single-trailer rigs and long turn- paying both tolls and fuel taxes on the same highway pike doubles. It was assumed that trucking firms would constitutes double taxation. Whether fuel taxes paid by pay a toll of as much as 50% of the cost savings that heavy trucks fully cover their fair share of highway costs would result from higher-capacity rigs. The resulting can be debated, but the fact is that political opposition to analysis found that, over a wide range of scenarios, toll tolls by the trucking industry has been a significant truckways would be economically and financially feasible. obstacle to wider use of tolls to fund improved highways. The idea is now being considered by Congress as part Recent work at the Reason Foundation has posited a of reauthorization of the federal surface transportation new approach to tolls and trucking. The basic concept is program. to provide significantly more valuable highway services to heavy-duty long-haul trucks to make it worth their while to pay tolls. The key insight underlying this OVERVIEW OF STUDIES ON approach is that double- and triple-trailer rigs make HEAVY VEHICLE CHARGES possible major increases in trucking productivity. But these longer combination vehicles (LCVs) are banned by Tony Wilson federal law from most parts of the National Highway System. The federal "LCV freeze" permits LCV opera- Road use, like many other activities, has traditionally tions only on routes that were available to these trucks been regulated on the basis of a set of prescriptive rules. 44