North Dakota's Third Biennial Strategic Freight Analysis Focuses on Motor Carriers

Upper Great Plains Transportation Institute researchers are conducting the third in a series of research projects. The North Dakota Biennial Strategic Transportation Analysis Program addresses key issues in the state. This study offers information that may help solve problems in the motor carrier industry, enhancing the state's competitive position through efficient transportation.

Each biennium the program focuses on a specific economic sector important to North Dakota. The purpose of the program is to improve North Dakota's economy by fostering a better understanding of the role transportation and logistics play in the success of the state's industries. The overall goal of the program is to improve the competitiveness of firms in North Dakota.

The 2003-2005 program focuses on the economics of the motor carrier industry and its customers. This analysis will specifically focus on costs resulting from obstacles faced in day-to-day business operations.

These obstacles include:

• Different regulations on size and weight in different jurisdictions,
• Different permit requirements, and
• Problems faced in retaining and supporting employees in the industry.

The motor carrier industry is a major link to the outside world for many businesses in North Dakota. This strategic biennial project focuses on the significance of motor carriers, and problems motor carriers and shippers face dealing with differences in regulations between North Dakota and the surrounding region.

Direct and Indirect Economic Impact Evaluated

Particularly, the program focuses on regulations of size and weight of commercial trucks. This analysis will evaluate the direct and indirect economic impact on shippers faced by the differences in motor carrier regulations and seasonal load restrictions. Restriction differences among counties, states and provinces provide a less than optimum transportation system. This, in turn, results in higher product costs, lost trade, and reduced revenues for producers and shippers.

The North Dakota Department of Transportation recently published a statewide strategic transportation plan, TransAction. Several initiatives referring to freight transportation and existing problems were identified. This UGPTI analysis directly addresses some of the issues that resulted from TransAction, studying some of the motor carrier problems identified in the plan.

Motor Carriers Face Multiple Challenges

Businesses and motor carrier companies are directly affected by weight, size and seasonal and year-round load restrictions.

Motor carriers, farmers and businesses desire load restriction free roads for all season delivery of commodities and products. In addition to seasonal and year-round road restrictions, some state, city and county highways have height or width restrictions that result in increased costs through reduced payloads and extra trips.

These restrictions often present confusion, frustration and additional costs for those trying to transport products within the state or region. In some cases, multiple permits may provide a motor carrier with the authority to transport freight across different counties and state highways, or within the region.

Problems exist, however, in the system of obtaining permits. A company may have to obtain permits from several different jurisdictions to complete a trip. In some instances, permits may not be available. This inconvenience is often costly and may result in re-routing or postponing an event.

Project to Determine Costs

The project has two objectives.

First, the project should determine the opportunities for, and the economic and safety impact of, a regional uniform size, weight and permitting system. In addition, it will provide information about economic costs to shippers because of the differences in size and weight regulations in the region including Saskatchewan, Manitoba, North Dakota, South Dakota, Minnesota, Montana, Iowa and Nebraska. This analysis will inform DOTs and policymakers as they examine economic costs of restrictions and regulations on motor carriers and their customers.

Second, researchers will analyze the economic impact of load limits and the benefits of establishing a statewide program to coordinate the administration of load limits. This will examine economic costs to shippers associated with seasonal and non-seasonal in-state load restrictions on state and county roads as well as the costs associated with the permitting processes and other problems that may surface as a result of the research.