In an effort to raise revenues, a handful of states have suggested that the federal government overturn a law that prohibits commercial development at highway rest areas. Repealing the law would allow state governments to get into the business of selling food and fuel from an advantageous location on the highway shoulder, or receive contract payments from commercial interests to do the same.
While at first glance rest area commercialization seems like an easy way for states to generate revenue, the fact is this will jeopardize private businesses that for the last 50+ years have operated under the current law and established locations at the highway exits. Due to their advantageous locations, state-owned commercial rest areas establish virtual monopolies on the sale of services to highway travelers.
Virginia Tech researchers predict that commercializing rest areas nationwide would mean a loss of over $55 billion in annual sales for existing businesses at highway exits — translating to a 46 percent decrease in Interstate-serving gas station sales, a 44 percent decrease in sales at Interstate-serving restaurants, and a 35 percent decrease in truck service sales at Interstate-serving truck service businesses.
Businesses located off the highway cannot compete with commercialized rest areas. These rest areas are opportunely located on the highway right-of-way and would create a de facto monopoly in favor of businesses operated out of rest areas.
NACS believes it is imperative that Congress maintains the current prohibition on rest area commercialization. Congress must reject any attempt to weaken existing law during the next surface transportation bill, or any other legislation. NACS is part of a broad coalition of organizations that oppose rest area commercialization. Rest area commercialization will not increase the number of hamburgers or gasoline gallons sold, but simply transfer the point of sale away from the current competitive environment at highway exits to the sole business contractor that pays the largest amount to rent the location on the shoulder of the highway.
NACS and other coalition organizations have conducted positive meetings with lawmakers in the House and Senate involved with drafting the new surface transportation law. NACS has also worked to recruit lawmakers who will publicly fight for our position in both chambers and pushed an aggressive grassroots campaign at the federal, state, and local level.
As the highway bill authorization nears its expiration, it has been reported that House and Senate leaders have agreed to extend the current law for several months. As debate on a new long-term surface transportation law continues, NACS and its coalition partners will fight any attempt to rescind the federal law that prohibits commercial development on the highway right-of-way.