Commerce Express Weekly Road Map: November 9th, 2021
Keeping you informed on the latest news/insights in our industry.
Commerce Express Blog
Back in September Canadian Pacific and Kansas City Southern agreed to merge. Now, CP and KCS have submitted a joint application to the Surface Transportation Board to merge both railroads, with the name of the combined railroad would be CPKC. This combined network would reach Canada, the United States and Mexico which will create a “single-line railroad,” said the companies in a release last Friday.
Trucking Update
- Traffic levels on the Texas State Highway 130 toll road are getting back to pre-pandemic levels and beyond, according to Doug Wilson, CEO of State Highway 130 Concession Co., and reported by Freightwaves. From March through October this year, the SH 130 Concession co roadway saw more than 7 million transactions, which is 31% higher than the pre-COVID period in 2019. The base toll rate for an 18-wheeler with one trailer is $31.40 with an electronic toll tag.
- Texas is expanding CDL testing to six days a week for the entire month of November, this is in response to truck driver shortage that has impacted supply chain issues. Usually tests and other CDL services are only offered during the week, but participating driver licenses offices will offer a limited number of appointments on Saturdays throughout November. The Texas Department of Public Safety has also added additional Saturday appointments at select CDL offices for customers who need to apply, renew, replace, or upgrade their Texas CDLs according to Freightwaves.
- By a 228-206 vote, Congress has passed the Infrastructure Investment & Jobs Act (IIJA) and is now on its way to President Joe Biden’s desk to be signed. This bill includes $273 billion over the next five years, in recurring federal program funding allocated to roads and bridges. The IIJA is the single biggest infrastructure bill in decades which also includes an additional $550 billion in new spending, including $110 billion for roads, bridges and major infrastructure projects according to Freightwaves.
Industry FAQ's
What kind of freight infrastructure projects does California and the U.S. Department of Transportation have going on now and in the future?
California and the U.S. Department of Transportation have formed a partnership to help facilitate projects and financing opportunities for multi-billion-dollar freight infrastructure improvements in the state to help enable goods move nationwide. Some projects that are scheduled are port upgrades, expanding capacity for freight rail, highway upgrades to improve truck travel times, and more.
What are some of the responsibilities of the Federal Railroad Administration (FRA)?
One of the main responsibilities of the FRA is to enforce safety regulations, i.e., speed limits and requirements for safety features such as positive train control. The agency regulates public and intercity rail services but does not regulate “closed” railways that operate exclusively on private property.
Rail Update
- The Infrastructure Investment & Jobs Act (IIJA), which was just passed by Congress includes a $66 billion investment in rail, which is the largest American rail investment since 1971. Some of the $22 billion of the investment will be provided as grants to Amtrak, with areas targeted by the remaining funds including federal-state partnership grants to modernize the ‘Northeast Corridor’ railway line, and significant investments in safety improvements.
- In mid-October Union Pacific announced the introduction of a pilot program that will offer a $60-per-container refund to ocean carrier customers for each container that is in-gated on Saturdays and Sundays at the Intermodal Container Transfer Facility (ICTF) in Long Beach, California. The goal of this program, which runs through December 31st, is to motivate weekend in-gates and reduce backlog at the ports. BNSF is also offering a $50 in-gate incentive for ocean containers that in-gate on a Saturday or Sunday above a set threshold at either Los Angeles or Long Beach. BNSF says it will be unique for each carrier, based on historic in-gate patterns, reported by Freightwaves.
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