DOT extends Mexican truck plan

National Industrial Transportation League (NITL) -- Logistics Management, 8/13/2008 4:53:00 AM

Federal Motor Carrier Safety Administrator John Hill said August 4 the U.S.-Mexico cross-border trucking demonstration project will be extended for two years. A press release from the U.S. Department of Transportation (DOT) said the extension is in accordance with U.S. law.

Under statute 49 U.S.C. 31315, FMCSA claims the right to continue the pilot until September, 2010. Reciprocally, Mexico has agreed to allow U.S.-based truck companies taking part in this demonstration project to continue to operate in Mexico for the same time period. The extension of the project was in the Federal Register this week.

FMCSA Administrator John Hill said, “I am pleased with the success of our demonstration project, but the participation has been limited by the uncertainty of the project’s longevity… We intend this extension to reassure trucking companies that they will have sufficient time to realize a return on their investment, and we anticipate additional participation with this extra time. The extension will ensure that the demonstration project can be reviewed and evaluated on the basis of a more comprehensive body of data.”

DOT added that Mexican trucks and drivers have established safety and security compliance rates equal or better to those of U.S. trucks and drivers.

House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-MN), who is sponsoring a bi-partisan bill in Congress to eliminate the pilot project, expressed his outrage at the latest move by FMCSA saying, “The Secretary of Transportation continues to flout the will of Congress… just days after the Committee on Transportation and Infrastructure has approved a bi-partisan bill to hold DOT to its original plan and terminate this pilot program after one year, the FMCSA announces its intent to extend this program for two more years. It also made the announcement on the first day of the Congressional recess. That is certainly no coincidence.”

The plan to allow Mexican-domiciled carriers into the U.S. has been criticized and challenged in court repeatedly by public advocacy groups as well as the Teamsters Union. Congress has tried multiple times to shut down the program but has not been successful. (Notice, January 4) The DOT has argued that they have met every stipulation that Congress set forward in the appropriations bill last May and thus is free to continue the pilot for up to three years.

FMCSA is facing vocal opposition from within its own party as well. House Transportation and Infrastructure Ranking Member John Mica (R-FL) said of the extension, “I am for open and fair trade, but what passed in NAFTA opened our highways to Mexican trucks and Congress must act to stop both Mexican trucks and contaminated foods from entering the country.”

Chairman Oberstar commented that “When Congress reconvenes in September, I intend to move our bill as quickly as possible, and make certain that the voice of Congress is heard loud and clear at the Department of Transportation, and that this program is finally shut down.”