Convergence of Transportation Policy and RFID Enabler of Future Transportation Policy Chris Body Mark IV Vice President, Business Development

Transportation MegaTrends Increased Vehicle Miles of Travel (VMT) – Increased 38 Percent since 1990 Increasing Congestion and Lengthening Commutes Limited funds for Road Capacity Enhancements Privatization/ Concessions are crosscutting issue Is the Gas Tax Dead?

Policy Solution - Apply the Invisible Hand Our Transportation, esp. Road, Resources are not allocated efficiently Price Cap = Scarcity = Out of Equilibrium Match cost of driving with cost of congestion No incentives to drive less or use alternate routes or modes GPS & RFID can assist in increasing the funding and spreading demand

Mature Technology, Developed Policy –Electronic Tolling, E-ZPass, Fast-Track Mature Technology, Developing Policy –HOT Lanes Mature Technology, Immature Policy –Congestion Pricing

Apply Market Incentives in Two Ways For the Consumer Demand for the Infrastructure For the Supply of Roadway Infrastructure

Technology Divergence

What is a HOT Lane? HOV + Tolls = HOT Lanes Newly Constructed or Converted Managed Facilities Maximizes Existing capacity Increases Throughput Cost Based on Value Pricing –HOVs - free –SOVs - Cost is Congestion Priced Toll Collection Typically Electronic - RFID

HOT Lanes

HOT Lanes on DC Beltway 14 Miles, 4 lanes in Median of 495 All Electronic Tolling Operational in 2012 Market Driven Variable Tolls

The Public Private Partnership VDOT –Will Retain Ownership of Facility –Will Oversee Operation Fluor/ Transurban –Construction –Operate & Maintain –Levels of Service Requirements

Plan View – DC Beltway HOT Lanes

HOT Lanes in Northern Virginia I-395/ 95 Conversion of Existing HOV Construction of New Facility 56 Mile Reversible Lanes North Operational by 2010 South by 2014 $1B Cost Financed by Variable Tolls Fluor, Transurban

95/ 395 Lane Configuration

Future Expansion? I-95 Section 100 In Baltimore* Maryland InterCounty Connnector* Dulles Toll Road HOT Lanes Eastern Beltway Expansion Western Beltway Expansion Maryland Beltway Express Toll Lanes I-270 Express Toll Lanes *- Under Construction

Congestion or Cordon Pricing Users must pay a fee to access a downtown area Time Variable and Direction Priced Tests Underway –London –Stockholm –Singapore –Coming to the U.S.? Typically RFID or Camera based

Currently in the Field Stockholm - RFID and Camera Based London - Camera Based, for now

London Advantage: Transport for London Responsible for All Transportation In London Camera Toll Sites Original Fee $10 - increased to $16 Operating Costs significantly higher than expected Considering switchover to tags for operating efficiency (20¢ vs. 60¢) Expanded Westward in 2007

London Congestion Pricing Zone Source: Transport for London

THE RESULTS

Stockholm: Reduction in Traffic 04/05 – 04/06 -19% -22% -26% -9% -21% Source: City of Stockholm

Something For Everyone? Congestion Reduction –London - 30% Reduction in Traffic, Half to other modes Environmental Impact –Stockholm Emissions Down 14% –London CO2 Down 16% NOX Down 8% Particulate Matter Down15% Modal Shift –50-60% to Public Transit –20-30% Around Zone

Stockholm - After Test, Advisory Vote New Government Working out Plan for a Portion of $$ For Road Improvements Outside of City Expected to be Re-Instated in August of 2007

Congestion Pricing – Coming to the U.S. $130M Allocated for Projects in 2007 $175M in Next Year’s budget request Reality – will provide some political cover for local politicians Urban Partnership Agreements

New York Proposal $8 to Drive in Downtown District, incl. toll South of 86 th Street FDR Drive and Westside Highway Free Some Vehicles Exempt Challenge: Support from Outlying Boroughs, esp. Queens

How Do We Pay for These New Projects Challenge: –Gas Tax is Tapped out –Politicians do not want to raise tax A Solution –Tap Private Sector Equity Markets –In the Form of Public Private Partnerships

PPP Financing, An Overview Entity Offers Facility for Concession Title/ Ownership NOT Transferred Performance Requirements –Maintenance –New Capacity –Customer Service –Toll Setting Not New to Transportation – Existing Around the World

What Does the Private Sector Bring Infusion of Capital Innovative Financing Innovative Ideas i.e. Marketing Ability/ Desire to Raise Tolls to Market Levels Best Practices

“ We Can Build Our Way Out of Congestion… Assuming We Price It Correctly.”

Contact Information Chris Body Vice President, Business Development Mark IV IVHS Other Background Information