Road Tariffs Pose Threat To Arkansas Trucking Firms

Ronnie Dowdy, president of Ronnie Dowdy Inc. in Batesville and chairman of the Arkansas Motor Carriers Association, says one of the biggest issues facing trucking firms is the looming possibility of toll roads in Arkansas.

As reported in recent weeks, the Arkansas Highway Commission is looking at the possibility of charging tolls on some of the state’s roads.

“To our understanding, if [the Highway Commission] can get approval from the Federal Highway Commission, they can implement those programs without the Legislature or the governor’s office okaying it,” Dowdy says.

“If I’m understanding it correctly, it will be located on our interstate systems for certain bridges. The money would be used to repair that particular bridge and the excess can be used on other highways.”

And any such toll would add to the cost of shipping goods through and within Arkansas.

“But here in Arkansas we’ve already been taxed. We’ve already paid the tax to build these highways,” Dowdy says. “Now we’re going to be charged rent to use them. That is the issue with the trucking industry regarding tolls.

“It would impact our industry. We’re a major user of the highways — we’re aware of that — but we pay our fair share. We pay quite a bit of the tax dollars spent on our highway systems.”

The AMCA has conducted a public opinion poll that shows most Arkansans are opposed to toll roads and the organization has announced that it will oppose the proposal.

Retired U.S. Rep. John Paul Hammerschmidt, a Republican from Harrison and former ranking minority member of the House Transportation Committee, says he doubts if the state can qualify for the federal pilot program.

Hammerschmidt chairs the Governor’s Citizens Council on Highway and Transportation.

Arkansas and Pennsylvania are the only states that have expressed an interest in the program.

With the Arkansas General Assembly coming together in regular session in January, the industry is keeping an eye on things that might work their way into law.

Dowdy says there’s been talk about the state bringing back the weight-distance tax that was previously assessed to the industry.

“We will be opposed to that. It’s not good for our manufacturers, shippers or receivers within the state,” he says. “It will be an added cost that will be very difficult to pass on.”

Dowdy says the major issue facing the trucking industry is a shrinking work force from which companies are having to pull drivers.

“It’s going to be an issue for a number of years,” he says. “We’re faced with trying to operate efficiently, effectively with a shortage of manpower.”

Trucking is the fifth-largest industry in Arkansas. The state has more than 1,200 for-hire trucking companies, including seven of the nation’s top 100 carriers. Three of those seven companies are among the nation’s top 10 trucking companies. The state also is home to 5,850 private interstate motor carriers.

Software Development

Researchers at the University of Arkansas Mack-Blackwell Transportation Center have developed a new computer software program that can make trucking companies more efficient.

The researchers believe the new system, developed with a grant from the U.S. Department of Transportation, can help less-than-truckload carriers determine the best locations for terminals and help truckload carriers maximize freight density and achieve shorter driving times.