Supporters of the North American Free Trade Agreement have said from the beginning the accord will be a boom to trucking, but it may come with a price for the industry. Officials in the Lone Star state are scrambling to pay for what will be an expensive deal, and trucking may have to open up its wallet to pay the bill.
A report in the Dallas Morning News this week indicates in the wake of NAFTA, cities such Laredo are seeing a boom in truck traffic, but it’s coming with a price — busted up and congested roads. Cities such as Laredo and Houston can't keep truck routes in shape nor build additional lanes fast enough.
State lawmakers are reviewing a number of plans to raise money to pay for all of the needed improvements, which will be more badly needed once the gates are fully opened to Mexican trucks, as President Bush is expected to do.
Proposals include increasing fuel taxes for the first time in 10 years, from 20 cents a gallon to 25 cents a gallon; building toll roads; or selling bonds, up to $4 billion worth, to finance needed highway improvements. Trucking's costs from fuel tax increases or toll roads are evident. As for bonds, someone has to pay for the state's debt on those bonds, and that could come in the form of an increase in transportation related fees.
Some transportation department officials are banking on former Governor and now-President George W. Bush to throw more highway dollars at the state, but others say that still won't be enough. The Texas Department of Transportation estimates it will need $11 billion annually through 2006 to meet all of the state’s funding needs, but right now there's only enough money for about a third of the needed work.
Highways aren't the only area where more funding is needed. There is also the concern over enforcing U.S. truck safety laws on Mexican trucks, with there nearly being universal agreement that Mexican trucks are not as well maintained as they are here. The Associated Press reports Texas is requesting $70 million to help fund the construction of new inspection stations at the border. This doesn't include the added cost of hiring more truck inspectors to man these new facilities.
In the meantime, local law enforcement agencies across the state are asking state lawmakers to give them additional authority to inspect all trucks for safety violations. Trucking officials in the state are cold to the idea, sensing it’s tantamount to leaving the fox guarding the hen house. They’re concerned the inspections are more about generating money and less about truck safety.
NAFTA will no doubt play a very significant role in trucking in the future, some say for the better, others say for the worse, but no matter where you stand, it looks like an expensive prospect.
