Trade Law Daily is a service of Warren Communications News.

Reliable Funding, Updated Restrictions Needed for U.S. Freight System, Industry Tells House Panel

Reliable investment, updated technologies and more capacity are necessary for the U.S. freight system to continue nurturing international trade, industry representatives told members of a new House transportation panel April 24. Higher funding was mentioned by everyone who testified before the recently formed panel on 21st Century Freight Transportation (see 13041726). Funding is “woefully short” of what is required to modernize the U.S. port network, South Carolina Ports Authority President Jim Newsome said in written testimony. The lack of funding impedes future freight mobility, especially with the growth of U.S. exports and the global shipping fleet. This year will bring the largest injection of new container capacity into the global container fleet, Newsome said. And while there have been some investments in U.S. ports, foreign ports are still “widely recognized” to have more capacity, he said.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

Newsome recommended development of a prioritization system to analyze costs and benefits for port modernization projects. This prioritization scenario recognizes that, due to funding constraints, not all ports will be deepened, he said. Harbor deepening and maintenance should also be treated as high priority projects, subject to streamlined approval and “with a steady and reliable stream of funding,” Newsome said.

Derek Leathers, president of trucking company Werner Enterprises, said Congress should set aside specific money to eliminate bottlenecks identified in the freight section of MAP-21, the transportation bill approved last year. That bill added money to freight projects in general, but “tight transportation budgets have greatly curtailed construction of new capacity, and it is unlikely that the bottlenecks identified under MAP-21 provisions will be funded with a greater priority than they were prior to the bill’s passage,” Leathers said in written testimony.

Air traffic is also increasing and will require infrastructure upgrades, FedEx CEO Fred Smith said in written testimony. Within the next 10 years, the top 20 U.S. airports will become overly congested, he said. Even with planned improvements in air traffic control technology -- thanks to the Federal Aviation Administration’s NextGen System -- runways and facilities will need maintenance, Smith said.

On land, better regulations will help improve the freight transportation system, industry representatives said. Both Smith and Leathers said Congress should relax length and weight restrictions for trucks. “The United States has the most restrictive truck weight regulations of any developed country,” Leathers said in testimony. “At the same time, America’s freight transportation demands are greater than that of any other nation, and we have the world’s most well-developed highway system. Restrictive federal regulations governing the length and weight of trucks prevent the industry from operating its cleanest, safest, most efficient equipment.” Smith said the U.S. should increase the national standard for twin trailers from 28 to 33 feet; a move that would not add wear-and-tear to the highway system and lead to safer driving and less mileage, he said.