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NAFTA Cross-Border Trucking Demonstration Project Update

NAFTA Cross-Border Trucking Demonstration Project Update. Kirk Davenport IFTA Annual Business Meeting July 15 – 16 Manchester, NH. EXPECTATIONS. September 7, 2007 One Year Project 100 Mexico-Domiciled Carriers 500 Trucks

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NAFTA Cross-Border Trucking Demonstration Project Update

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  1. NAFTA Cross-Border Trucking Demonstration ProjectUpdate Kirk Davenport IFTA Annual Business Meeting July 15 – 16 Manchester, NH

  2. EXPECTATIONS • September 7, 2007 • One Year Project • 100 Mexico-Domiciled Carriers • 500 Trucks • Demonstration project extended on August 6, 2008 for two additional years

  3. PARTICIPATION • 29 Mexican carriers issued OP-1 operating authority • Minus 2 Minus 2 = 25 actual participants • 101 trucks • 85% of all trucks trips by the participants were within the border commercial zone

  4. Why Low Participation • Uncertainty on whether the OP-1 operating authority granted under the demonstration project would continue • Additional costs of insurance for long-haul operations beyond the commercial zone • Participants had to operate under a single operating authority (i.e., could not have part of fleet with OP-1 for long-haul operations and part of fleet with OP-2 for operations only within the border commercial zones

  5. Independent Evaluation Panel ReporttoU.S. Secretary of TransportationOctober 31, 2008 • Meaningful statistical evaluation is not possible because of the low level of participation and that most of the participating trucks operated within the commercial border zone • Participants had a lower out-of-service rate than US-domiciled trucks • No crashes involving Mexican carriers participating in the demonstration project

  6. Conclusion March 11, 2009 Fiscal Year Omnibus Appropriations Act signed by the President, which included a provision prohibiting FMCSA from spending any additional funds on the cross-border trucking demonstration project FMCSA immediately issued letter to participants revoking their OP-1 operation authority FMCSA restored OP-2 operating authority for participants who had an OP-2 prior to the demonstration project

  7. U.S. Carriers Operating in Mexico • 11 U.S. carriers issued authority to operate in Mexico • U.S. carriers will continue to operate in Mexico

  8. Independent Evaluation Panel Report to the U.S. Secretary of Transportation http://www.fmcsa.dot.gov/documents/cross-border/Ind-Eval-Panel-Rpt-US-Mexico-Cross-Border-Demo-Proj-10-31-08.pdf Federal Motor Carrier Safety Administration NAFTA Web Page http://www.fmcsa.dot.gov/intl-programs/intl-programs.htm

  9. QUESTIONS

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