Eagle Pass International Bridge System Board recommends Commercial Vehicle Toll Fare Rate Increase
By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015
The City of Eagle Pass International Bridge Board of Trustees unanimously approved a proposed toll fare rate increase for commercial vehicles of One Dollar ($1) per axle at their regular meeting held on Monday, August 31, 2015 as a measure to raise revenues for constructing commercial lane improvements at the Camino Real International Bridge (Bridge II) despite serious concerns and opposition by both Eagle Pass and Piedras Negras, Coahuila, Mexico customs brokers, freight forwarders, and transportation companies.
Board Chairman Jesus Casas called Agenda Item No. 6 calling for discussion and possible action on the City of Eagle Pass International Bridges toll fares.
Eagle Pass International Bridges General Manager Mario Diaz presented the Board with certain information toll fares charged by Texas-Mexico border international bridges, including a toll fares comparative chart. “It shows a comparison of their rates to our rates,” said Diaz.
Diaz presented the charge totals currently in place and a historical chart of past changes to the toll fares during the past 10 years in the City of Eagle Pass.
Chairman Jesus Casas stated that the City’s International Bridges are faring very well concerning the total amount of revenues being generated as a result of increased traffic. However, Casas advised the Board that a proposed toll fare rate increase must have an appropriate justification to demand a rate increase.
“What is the main reason you are proposing to increase the toll fares, if I don’t see any problems. We have enough reserves and we haven’t seen any projects that might benefit the users of the bridge, yet. Yes, we do have some expansions for commercial traffic on Bridge II, and I truly believe that’s going to make things a lot better for the commercial crossings. But if we are in a surplus, you might want to say it that way, why do we want to increase the toll fares?,” questioned Casas the Bridge General Manager and City Finance Director San Juana Garza.
City Finance Director Garza replied that the recommendation of increasing toll fares was being sought due to costs to be incurred in the upcoming year from bridge projects. “Our recommendation is to only look at the commercial toll fares. Looking at the comparison chart, the City of Eagle Pass is at the lowest of all the rates,” said Garza.
Garza advised the Bridge Board that the City of Eagle Pass is not seeking any changes to pedestrian and passenger vehicle toll fares.
Due to the significant change of the Mexican Peso rate of exchange to the U.S. Dollar during the last few months, Eagle Pass businesses are suffering a decrease of business from Mexican retail customers whom have decided to shop in Mexico rather than in the United States. Downtown Eagle Pass merchants have noted a decrease in retail sales ranging between 30 to 50 percent as a result of the Mexican Peso exchange rate falling to $16-$17 Pesos for every American Dollar. Pedestrian crossings declined almost 2,000 during the past month as a result of the devaluation of the Mexican Peso.
“We understand the volatility of the peso and the way it has been, but we do have to fund a $1,300,000 ($1.3 Million) of the expansion of the commercial lane on Bridge II. We also have some studies currently being done on Bridge I and we’re going to need additional funding,” said Finance Director Garza to the Board.
Garza stated that currently the City of Eagle Pass charges $3.75 per axle on commercial vehicles while in comparison the City of Del Rio charges $5.00 per axle on commercial vehicles.
Chairman Casas stated that he would like to see certain justifications be met under the recommendation to increase the commercial vehicle toll fare. Casas is a Certified Public Accountant himself.
“I would like to see a report where it says, this is what we’ll need in funds and this is how we’re planning to pay it. What is the expense that we’ll be incurring and this is the amount of increases in fares that could justify the investment or expense that we will be doing,” said Casas.
Eagle Pass Mayor Ramsey English Cantu stated that the City of Eagle Pass is looking at $1,300,000 in investments to facilitate the commercial traffic at Bridge II. “There is very clear justification in my opinion for the mere fact that the commercial side is constantly contacting our offices to see how we can make that process faster, especially from the Asociacion de Aduanas in Piedras Negras and dealing with them as they’ve seen the need to get our traffic to flow,” said Mayor Cantu.
Mayor Cantu added that the proposed toll fare rate increase is to assure the funding for the projected City funding of the $1.3 Million improvements on Bridge II and also facilitate better service to the individuals receiving the service at the bridge systems.
“I agree with you as to the way it was presented but we need to be looking as to how are we going to be funding the $1,350,000,” said Mayor Cantu.
Chairman Casas stated that he understood that the City of Eagle Pass works on a budget but that he would like certain details to be presented before the Bridge Board of Trustees considers approving the toll fare rate increase recommendation.
City Finance Director Garza proceeded to give a more detailed justification report on the City’s recommendation of increasing the commercial toll fares by $1.00 per axle from the current rate of $3.75 to $4.75 per axle on commercial vehicles.
“Even if we move to increase it by the highest proposal of $1.00 it would only bring in $615,000 and the investment is $1,350,000 so far,” said Garza.
Garza noted that the project is currently in the bidding process and that it could come in much higher than what was proposed overall ($1.3 Million).
“Even if we increase the fees by $1.00 per axle, our fees would be lower than the City of Del Rio and it would still not be funding 100% of the additional cost of the commercial lane,” said Garza.
City Interim City Manager Hector Chavez stated there are certain issues of infrastructure improvements and needs that must be addressed as commercial traffic is proposed to significantly increase in the near future.
Mayor Cantu motioned: “Mr. Chairman, I make a motion to approve the $1.00 increase on the commercial traffic toll fares that would constitute an amount of $615,439.” Mayor Cantu’s motion was seconded by Board member Elizabeth Chisum.
The motion was then put to a vote and was approved unanimously.
Present during the Eagle Pass International Bridge Board of Trustees meeting was Chairman Jesus Casas, Trustee Elizabeth Chisum, Eagle Pass Mayor Ramsey English Cantu, International Bridge General Manager Mario Diaz, City Finance Director San Juana Garza, and Interim City Manager Hector Chavez.
The recommendation and proposal will now be taken to the Eagle Pass City Council for possible approval which would then be made into an ordinance to be read three times before final implementation, if approved. The new proposed toll fares for commercial vehicles would be set for the new 2015-2016 fiscal year at $4.75 per axle from the current rate of $3.75 per axle, an increase of one dollar per axle. Generally, an 18 wheeler commercial vehicle has five axles.
Under the new proposed toll fare rate increase for commercial vehicles approved by the Bridge Board, a two axle commercial vehicle will now pay $9.50 instead of $7.50, a three axle vehicle will now pay $14.25 instead of $11.25, a four axle vehicle will now pay $ 19.00 instead of $15, and a five axle commercial vehicle will now pay $23.75 instead of $18.75.
Piedras Negras, Coahuila, Mexico Customs Brokers Chamber members have voiced strong opposition to the Bridge Board’s toll fare rate increase on commercial vehicles citing the serious devaluation of the Mexican Peso to the American Dollar significantly increases the cost of doing business at the Eagle Pass-Piedras Negras Port of Entry.
Mexican Customs Brokers claim the overall number of commercial vehicle crossings and revenues will decrease if the toll fare rate increase is approved by the Eagle Pass City Council because businesses will seek other cheaper international bridge crossings such as Laredo, Del Rio, or others. Mexican Customs Brokers argue that the current Mexican Peso devaluation crisis is not the opportune time to raise the toll fares for commercial vehicles, suggesting the rate increase will have the opposite effect of raising more revenues to pay for the City of Eagle Pass’s $1.3 Million Bridge II Commercial Lane Expansion Project.
Now, the hot potato is in the hands of the Eagle Pass City Council.
