HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012 Freight and Logistics Council of WA A more holistic HVCI Reform Meena Naidu,

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HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012 Freight and Logistics Council of WA A more holistic HVCI Reform Meena Naidu, Project Director 30 August 2012

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012 The disconnects: between the charges paid by users and the expenditure needed to provide heavy vehicle road access between the funds received by governments and the monies actually spent (and required to be spent) between the three levels of government in planning, investment and allocation of funds for heavy vehicle road services. A broken system

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012 CRRP Feasibility Study

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012 The new focus for HVCI Government Community Freight customer Funding Investment and planning Access and incentives Charging and regulation Heavy vehicle user

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012 The new heavy vehicle charges and investment framework HV investment and co- ordination function Planning function Infrastructure/service provision function LV/CSO funding (Govt taxation revenues) Regulation function Heavy vehicle usage HV Funding (Charges revenue) Access Payment for access based on regulated charges and usage Funds allocated based on usage, to fund investment Contribution to mixed investment Broad multimodal transport planning considering community and broader supply chain requirements HV Financing LV/CSO investment and co-ordination function Light vehicle usage NationalLocal Supply chain LV/CSO Financing

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012 HV charges revenue will be tied to HV related capital and maintenance investments and will not go into general revenues. HV related investment that are funded through charges will not be determined through current budgeting processes Charges will only fund commercially viable maintenance and capital investment (i.e. where sufficient benefits accrue to the heavy vehicle user to justify the cost) Governments will need to fund investments that are not commercially viable through general taxation revenues but will not be recoverable through charges – there is no restriction to the extent to which governments wish to do this The threshold issues

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012 Proving the benefits To what extent is access currently being limited due to a lack of funds or funding uncertainty? –To what extent do infrastructure bottlenecks exist within the system? To what extent will access be compromised in the future due to a lack of maintenance? Will the broader supply chain be interested in providing infrastructure if costs are recovered through charges? How can transparency lead to better investment and usage?