international scan: reducing congestion and funding transportation using road pricing

National Cooperative Highway Research Program

American Association of State Highway and Transportation Officials

U.S. Department of TransportationFederal Highway AdministrationFederal Transit Administration

International Scan:Reducing Congestion and Funding Transportation Using Road Pricing

International Scan:Reducing Congestion and Funding Transportation Using Road Pricing

American Association of State Highway and Transportation OfficialsFederal Highway AdministrationFederal Transit AdministrationNational Cooperative Highway Research ProgramMay 2010

American Association of State Highway and Transportation OfficialsFederal Highway AdministrationFederal Transit AdministrationNational Cooperative Highway Research ProgramMay 2010




Revenue GenerationPay for roadway infrastructure,

operations and/or transportation system capacity with charges road user charges (i.e. flat toll rates, variable

charges, distance based user fees)

Why Road Pricing?

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Demand Management

Reduce traffic congestion, promote environmental goals, improve cost of doing business, and

support community livability based on amount of traffic

reduction sought (i.e. congestion pricing,

cordon/urban area pricing, facility pricing)




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US Road Pricing Context1. Traffic congestion in major urban areas is a significant and

growing problem

2. Lack of sustainable funding sources for multimodal surface transportation is a growing concern

3. Enhanced environmental, sustainability and livability concerns related to the roadway network and its use

4. Variable road pricing limited primarily to High Occupancy Toll (HOT) lane projects and a few existing toll road facilities. No large area or regional variable road pricing projects have been implemented

5. Opportunity to learn from the experience of others who have implemented road pricing as a transportation demand management tool and/or for revenue generation




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Purpose of the Scan

“Identify new ideas and workable models for integrating variable road pricing approaches into

state, local and regional policies, programs, and practices.”




Scan Team Participants

PANYNJ

FHWA

FTA

VDOT

GA DOT

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Mn/DOTWSDOT




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Scan SitesDemand Management• Stockholm

• London

• Singapore

Revenue Generation• Germany

• Czech Republic

Revenue Generation & Demand Mgmt.• Netherlands







Stockholm Congestion Tax Purpose

─ Reduce congestion (primary)

─ Increase accessibility, promote transit and reduce emissions (secondary)

Description• Cordon around center city• Time of day pricing structure• License plate reader

technology• Lidingo Rule• 30% of vehicles are exempt

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Key milestones• Trial (Jan-July 2006)• Vote (Sept 2006)• System reopens (Aug 2007)

Results• 20% reduction in traffic• 10-14% decrease of emissions;

2-10% better air quality• Net revenues of £137 million

($220 million) in 2008

Swedish Road Administration (Managing Authority)




London Congestion Charge

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Purpose ─ Reduce Congestion

(primary)─ Promote Transit and

Reduce Emissions (secondary)

Description• Area charge in center city• Flat daily fee structure• License plate reader

technology• 90% discount for residents

within the zone• 30% of vehicles are exempt

Key milestones• Open (Feb 2003)• Western extension (Feb

2007)• Repeal of Western Extension

(2010)

Results• 25% and 19% reduction in

traffic (central and western extension respectively)

• Net revenues of £137 million ($220 million) in 2008

Transport for London (Managing Authority)




Singapore Electronic Road Pricing

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Purpose ─ Congestion Management

(primary)─ Promote Transit

(secondary)

Description• Cordon around city center, with

expressway pricing – rates vary by time of day

• Fee structure adjusted quarterly based on 85th percentile speed

• Transponder based with value-added services via smart card

• No exemptions

Key milestones• Open (1975)• Electronic charging (1998)

Results• Smart card technology

protects user privacy• Achieved target speeds of

45-65 kph on expressways 20-30 kph on arterials

• Net revenues of SGD 100 million ($75 million) in 2008

Land Transport Authority (Managing Authority)




German Truck Tolling

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Purpose ─ Revenue Generation

(primary)─ Reduce emissions, mode

shift to rail and water (secondary)

Description• GPS based with DSRC

interrogation and license plate reader enforcement

• Fee based on distance, vehicle type and emissions class

• 35% are foreign trucks

Key milestones• System opens (January 2005)

Results• Violations < 2%• Empty truck trips declined by

7% • 58% shift from dirtier (Euro

class 1,2,3) to cleaner trucks (euro class 4,5)

• Revenues of 3.5 billion Euros ($5 billion) in 2008

• Net revenues split 50% roads, 38% rail, 12% waterways

Ministry of Transport (Managing Authority)




Czech Truck Tolling

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Purpose ─ Revenue Generation (primary)

Description• Transponder/DSRC based with

license plate reader enforcement• Fee based on distance, vehicle type

and emissions class• 40% are foreign trucks• Special law prohibiting truck

operations on Sundays and peak times on Friday evening and Saturday morning

Key milestones• System opens, all trucks 12,000

kg or more pay (Jan 2007)• Expansion to include trucks 3,500

kg or more (Jan 2010)

Results• Average toll rate of $0.35 per mile

on freeways• Revenues of 6 billion CZK ($350

million) in 2008





Netherlands Distance-Based Charge

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Purpose ─ Reduce Congestion,

Generate Revenue to replace fixed taxes, shift to “User Pays” Principle (primary)

─ Promote Transit and Reduce Emissions (secondary)

Description• Shifting from purchase and

ownership tax to a distance-base fee structure

• GPS based with DSRC interrogation and license plate reader enforcement

• Fee based on distance, vehicle type, emissions class and time of day

Key milestones• All trucks (2012)• All vehicles (2018)

Forecasted Results (2020)• 10%-15% reduction in VMT• 10% reduction in CO2

emissions• 6% increase in usage of public

transit• Revenue neutral (offset by

reduction in other transportation taxes)





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International Road Pricing Scan

What were the major findings?




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1. Host countries with clearly defined and well-understood policy goals achieved their targeted outcomes most effectively.

─ Congestion management in Stockholm, London and Singapore

─ Revenue Generation in Germany and Czech Republic

─ Dutch user pays, revenue neutral, tax consolidation approach




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2. A large-scale demonstration project is a powerful tool for public acceptance, allowing people to experience the benefits of congestion pricing. ─ Stockholm trial demonstrated the benefits of

congestion pricing first-hand

Public Support for Pricing Project Implementation

of Pricing Project

Edinburgh & Manchester

Referendums

Demonstration Period

Outreach and Education Period

Stockholm Vote

Source: CURACAO State of the Art Interim Report, April 26, 2008. p. 94,




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─ Helps to manage the pricing program as an element of overall transportation system performance

─ Singapore: price adjusted quarterly to maintain targeted minimum speeds and using advanced analytics and traffic models to better understand network impacts of pricing on parking and transit.

─ Post-implementation planning and performance assessments used in Germany, London and Stockholm to ensure cost efficiency and operating effectiveness.

3. Thorough planning and performance measurement ensures achievement of overall goals




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4. Linking the pricing structure to benefits received by users contributes to public acceptance and helps to avoid the potential negative impacts from traffic diversion.

─ German truck toll rates are set to reflect infrastructure life cycle costs from trucks. Rates are low enough to ensure no significant diversion of truck traffic to non-tolled alternatives

─ Singapore’s ERP has most dynamic and flexible pricing structure of the sites visited

─ Swedish toll rates on new roadway infrastructure are set to reflect the value of reduced travel time and operating costs relative to existing non-priced routes




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5. Public outreach and communications key component of the program at every stage.

A. prior to making the implementation decision,

B. during the program design process

C. during the operational phase.




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6. Open-source system designs offer long-term advantages to manage costs of implementation and operations, ensure system flexibility and scalability, and establish a foundation for system interoperability.

− Dutch plan would have allowed multiple vendor solutions to create a competitive environment

− Singapore’s second generation smart card designed to be interoperable with the transit fare media, retail purchases and parking payment systems




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7. Interoperability among states and countries is recognized as a critical issue that needs to be addressed at high levels.

− Existing toll systems with large sunk costs in proprietary applications and equipment heighten the challenge of transition

− EU has adopted Directive 2004/52/EC− Intergovernmental coordination in sharing national vehicle registry

information between agencies is key to operations, enforcement, and interoperable systems of the future

EnforcementSystems and

equipment

Holder

Installation facility

ProductionTrusted

Element (TE)

EnforcementBack-office

Invoice

ServiceProvider

ServiceProvider

OBU

CertifyingBodies

Dedicated back officeCharging & Billing

TE

OBUTE

GNSSSatellite system

ProductionOn Board Unit

(OBU)




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8. Equity and privacy concerns are addressed by host countries through exemptions, revenue use, technology, and business rules.

─ Exemptions used in London and Stockholm to address issues of equity.

─ Privacy addressed in Singapore through use of a “smart cash card” that does not contain user data.

─ The Dutch plan addressed privacy through a smart client and on-board data aggregation

─ Using toll revenues to fund transit and other modes represents a transportation system view




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9. The urban area pricing projects integrated public transit investments and land use planning in order to manage congestion.

─ Stockholm and London made robust investments in public transit and alternative modes leading up to and following the introduction of road pricing.

─ Singapore has adopted and committed funding to realize a master transportation plan which integrates road pricing, transit, roadway expansion and land use.




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Next Steps1. Extend and enhance outreach and education efforts to

communicate international lessons and broaden the US discussion

2. Conduct further research to better understand key factors that contributed to success

3. Identify how these road pricing lessons learned are applicable in the US context at the national, state and regional levels to address economic and mobility needs

4. Develop a road pricing toolkit to aid implementation considerations

5. Address best practices in procurement and technology choices




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Road Pricing Works !!!




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For more information contact:Mark F. Muriello

[email protected]

Summary Report:http://international.fhwa.dot.gov/pubs/roadpricing/roadpricing.pdf

For more information contact:Mark F. Muriello

[email protected]

Summary Report:http://international.fhwa.dot.gov/pubs/roadpricing/roadpricing.pdf

international scan: reducing congestion and funding transportation using road pricing

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