A new contract between the US Transportation Department and a fleet of private companies is poised to reshape the way the country’s freight and cargo transportation system operates.
The Department of Transportation (DOT) announced the $3.4 billion contract on Thursday with the Federal Cargo Transport Association (FCTA), which represents nearly 2,500 private companies in the transportation sector.
The companies are required to meet certain criteria, including meeting certain safety and security standards, making sure that the freight they transport is safe and that they’re operating within the law.
In addition, the companies must submit quarterly financial reports, which can then be used to determine whether they’re in compliance with safety requirements.
The new contract is the first contract awarded under the Federal Government’s “One Nation, One Vehicle” program, which seeks to incentivize states to improve safety for freight operations.
The contracts are being made in an effort to improve the US’s transportation network.
The move is expected to result in the largest number of trucks operating in the country in years.
Read more about the US transportation system at the Washington Post