City Has Much to Lose or Gain in Fuel Debate -- Plans of Obama, McCain Will Affect Transport Hub
Friday, October 10, 2008 5:54 PM
Symbols: FDX
(Source: Commercial Appeal, The)trackingBy Tom Charlier

As fuel prices spiraled to new heights this year, the trucking company that Michael Bruns launched and nurtured into one of the nation's leading intermodal carriers became a diesel-powered symbol of the Memphis area's sensitivity to energy issues.

Total expenses at Comtrak Logistics Inc. shot up 30 percent. For the first time since the company began as a three-truck operation in 1983, fuel costs outstripped labor expenses at the 1,400-employee firm.

"I think you're always prepared for the next round of price increases, but when they continually come, week after week, I don't think anyone can be ready for them," said Bruns, Comtrak's president.

With the presidential race winding down , energy policy has emerged as a major point of contention between the Republican nominee, Sen. John McCain, and Democrat Sen. Barack Obama. Each has offered differing plans to attack high fuel costs, wean America from foreign oil, address climate change and develop alternative energy sources.

McCain emphasizes increased domestic production of oil and gas by lifting a moratorium on drilling into the outer continental shelf, while also pushing incentives for more efficient and alternative- fuel vehicles.

Obama favors giving citizens relief from high pump prices with rebates funded by oil companies' record profits and, as a longer- term measure, making investments in clean energy that he believes could generate 5 million jobs.

Few cities have as great a stake in the debate as Memphis - a transportation and distribution hub that's home to the world's largest-volume cargo airport, numerous trucking and barge operations and is served by five Class 1 railroads. It's also the site of the nation's largest manufacturer of solar-energy panels.

Like Comtrak, many firms bore strains as fuel prices soared earlier this year. At the city's largest private employer, FedEx, fuel costs were partially responsible for the first quarterly loss in 11 years.

The way Bruns sees it, both candidates have advanced thoughtful energy plans, but he isn't sure either appreciates the extent to which fuel costs are intertwined with the troubles of the economy.

"I think what is needed is an understanding of the effect the fuel expense has on both the ultimate consumer and those purchasing the fuel," Bruns said. "There's no question we're paying more for a loaf of bread because of what we're charging for fuel."

Both McCain and Obama support measures to crack down on excessive oil speculation, which they say has contributed to high fuel prices. They also offer plans to stimulate greater use of domestic energy supplies.


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