Trucking Responds to TransLink: More Taxes? We Call for More Services
TransLink is seeking new, long-term funding sources to sustain and expand its services, which will have direct cost implications for businesses and taxpayers. As TransLink explores ways to generate revenue, BCTA is examining the possible impacts on the trucking industry, especially in light of a slowing economy and the push to decarbonize.
The trucking sector is undeniably the backbone of the regional economy, with commercial vehicles transporting over a billion dollars’ worth of products in Metro Vancouver daily. Improving the movement of goods can boost BC’s economic performance. A robust public transportation system benefits the trucking industry by promoting a fluid supply chain, alleviating traffic congestion, and ensuring predictable travel times. In short, BCTA agrees with TransLink that a sustainable funding model is essential for providing a dependable public transportation system.
Funding the Future
As TransLink considers alternative funding models, it’s crucial to consider the implications for the freight industry. The Fuel Tax in Metro Vancouver currently plays a significant role in funding TransLink,
with commercial carriers being major contributors. For instance, fuel costs represent 30% – 50% of total operational freight expenses. In 2023, we understand $89 million was directed to TransLink through the Fuel Tax from diesel, which we estimate the trucking industry has contributed 70% of those funds (approximately $62 million). This begs the question: what additional taxes, if any, can the trucking industry bear without jeopardizing business operations? Further, with the ongoing push to decarbonize fleets, what additional taxes can the trucking industry tolerate while still scraping up investment dollars for low- and zero-emission technologies?
Given the slowing economy and on-going threat of tariffs, the trucking industry cannot bear additional taxes directed to TransLink. However, if new revenue streams, such as mobility pricing, are on the table, the industry would rather see annual vehicle levies applied to all vehicles, including electric ones. This approach reflects a fair financial contribution from all road user groups and could provide a relatively simple way to collect fees. With any increase in fees, the trucking industry needs transparency in how road user taxes and fees are allocated.
More Pay, More Service
If new tax policies result in higher costs for commercial vehicle operators, it is reasonable to expect TransLink to deliver new services that would support the freight industry. We believe TransLink could offer to:
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Work with local governments and facilitate regional discussions on finding opportunities to expand trucking routes and hours of operation, offering freight operators increased route options and transport times.
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Work with local governments to identify key municipal corridors that could be potential candidates for freight priority measures, including shared use of HOV and transit lanes to expedite travel times and strengthen supply chains to the port, borders and Highway 1.
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Streamline permitting processes that guarantee permits are issued within one day. Following local governments adopting the regional permit manual and participating in onRouteBC, for TransLink to continue to move forward with the First/Last Mile Term Permit.
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Lead a program to allocate 5% of all new taxes or fees impacting the trucking industry to a fund aimed at accelerating investments in zero-emission heavy-duty vehicles and infrastructure, including potentially jointly used charging stations with TransLink.
BCTA fully supports TransLink’s efforts to develop a new funding model. However, if any new costs are imposed on the trucking industry, it’s essential that TransLink expands its services to enable trucking companies to grow their businesses.
Questions? Want to join the conversation? Contact the BCTA Policy team and [email protected]
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