Potholes and the Cost of Trucking
Anyone who’s ever driven on America’s highways is familiar with the tales of potholes, cracked roads, and never-ending construction. States allocate billions from taxpayer money each year for road upkeep, yet the infrastructure seems to deteriorate more quickly than it can be fixed. What many drivers don’t know is that large trucks are a major culprit of this damage, contributing significantly while not really footing the bill for repairs.
The federal government suggests that a fully loaded single 18-wheeler can create damage similar to that caused by about 10,000 passenger vehicles. Although trucking companies pay fuel taxes and highway fees, this only covers a fraction of the road destruction they contribute to. The rest falls on taxpayers who shoulder the costs of repairing and resurfacing crumbling roads and bridges.
Interestingly, moving more freight onto rail can help preserve road surfaces and save taxpayer dollars.
Trucking plays a vital role in the economy, and, when combined with freight rail and shipping, it forms a crucial part of the nation’s supply chain. However, a shift towards rail for freight transportation makes a lot of sense. Rail networks are maintained by the same companies that utilize them, and trains can handle goods more safely and efficiently than trucks can. So, shifting freight to rail could result in less damage to our roads that we’d need to fix.
Merger Potential
A recent merger proposal between Union Pacific and Norfolk Southern is an opportunity to enhance both infrastructure and supply chains simultaneously. By establishing a more streamlined coast-to-coast rail network, the merger could capture more freight that’s currently transported by trucks, freeing up billions in hidden taxpayer funds for road maintenance.
Linking Union Pacific’s extensive western network with Norfolk Southern’s eastern routes would yield America’s first real transcontinental railroad, stretching from the Pacific to the Atlantic. For shippers, this means simplifying shipping logistics with single-line pricing instead of managing multiple carriers. It would likely result in quicker deliveries and fewer interchanges, which could lower costs.
Unlike trucking companies, railways build and manage their own infrastructure. All tracks, bridges, and rail yards are funded by private investments instead of taxpayer money.
When shifting freight from trucks to trains, taxpayers gain a twofold advantage. It results in less highway damage needing repairs, plus there’s the added efficiency in how freight is handled.
The financial benefits aren’t just hypothetical. Large trucks account for around 40% of road wear, but they contribute just about 10% of total miles driven according to the statistics.
A study from the North Carolina Department of Transportation points out that trucks with four or more axles pay between 37% and 92% less in road damage fees. This is a trend observed from state budgets across the country, from Texas to Pennsylvania. Repair costs for highways are rising while the fees from trucking remain relatively stagnant.
Each time freight shifts to rail, fewer roads suffer damage while saving taxpayer dollars.
Concerns About Monopoly
Of course, whenever industries consolidate, the usual complaints of “monopoly” arise. This perspective overlooks the actual competitive landscape. Railroads compete not only against each other but also against the trucks that dominate freight transportation.
Trucking controls about 70% of domestic cargo volume, often backed by taxpayer-funded roads. Enhancing the alternatives offered by railroads isn’t anti-competitive; it’s quite the opposite. It fosters more competition within a market propped up by taxpayer support for trucking.
At its core, this merger is a test of whether the current administration believes in free-market solutions. Union Pacific and Norfolk Southern aren’t seeking taxpayer funding for the merger. They’re not after subsidies or special treatment—just intending to use their capital to lower public expenses and strengthen supply chains.
If policymakers genuinely wish to preserve our aging roads and enhance supply chain infrastructure, the decision is straightforward. It’s time to embrace free-market principles and allow railroads to handle more freight off the highways.
