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Tolling Technologies and Practices
AFERA - ARMFA 16th ANNUAL GENERAL ASSEMBLY T&I GP Forum May 28, 21015
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The Decision to Toll An additional source of revenue based on the ‘User Pays’ principle, targeting road users: To recover cost of building and operating a road asset – but what proportion? An opportunity to bring in private finance, A supplement to fuel levies or other Road Fund income, BUT is it an efficient way to collect additional funds? What are the provisions in the road act &/or tolling legislation? Are alternative routes required? > a social necessity, but a way to avoid toll payment, How are toll levels set? Who will receive the toll revenue – treasury, road sector or concessionaire? Unless traffic levels meet certain thresholds, tolling is unlikely to meet the full costs of construction, operation & financing.
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Will toll revenue be higher than the cost of collection?
The Decision to Toll Political Risk Examples of schemes that have been stalled / abandoned; Associate toll introduction with new infrastructure or improved service level; Assess the willingness of road users to pay. Other Options Fuel levy; Vehicle registration; Mass-distance charges, and Congestion charges. The BIG question: Will toll revenue be higher than the cost of collection?
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Options for Road Financing
Financing, construction, toll collection, operation & transfer by concessionaire : No government contribution. Tolling with guarantees on revenue from traffic levels - MRGs: Government contributes if traffic does not meet growth expectations Shadow tolling: Concessionaire paid by government based on traffic levels – no toll collection costs Availability payments: Concessionaire paid by government based provision of infrastructure – no toll collection Tolling does not have to involve the private sector Tolls set to meet only operating & maintenance costs – investment funded by government; Cross-subsidisation: income from a highly-trafficked road funds other roads on the network
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Setting Toll Fees – Keeping the Balance
Economic Benefit Financial Need Maximize Income to Meet Costs Encourage Use Affordability Income Expenses Operation Maintenance Loan & Equity Servicing Fees for Use of Reserve Capital Contribution Toll Fees Administration
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Setting Toll Fees - Some basic principles
Tolls need to be perceived to be fair – communication strategy Balance affordability against revenue maximisation Higher tolls > more diversion Toll based on size & damage Trucks pay at least 4 times cars
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Tolling Layouts Open System Closed System
Toll plazas at regular intervals along the road Payment made at each plaza Free access to the road Toll plazas at all entry & exit points Toll paid on exit Access to toll road can be controlled Toll Plaza Toll Road
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Tolling Layouts Open Closed
Lower infrastructure, toll collection & operation costs Good for mix of through & local traffic Allows large numbers of access roads Each vehicle pays in accordance with distance travelled Allows control of prohibited vehicles Not all trips will be tolled Easier to avoid payment Hard to exclude prohibited vehicles More infrastructure needed Limited number of access points > restricts use for local trips Higher operating costs
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Evolution of Toll Collection
Cash - Manual Delay ‘Leakage’ <15% lane capacity 35-45USc to collect Coin Machine Some delay Coin or token only 25% lane capacity 28-35USc Electronic Toll Collection - ETC Reduces delay & emissions Device in car & reader at plaza Can be easy to avoid >50% lane capacity 7-19USc GPS Based GNSS Applied to specific locations / distances/ times Needs GPS & GSM Road pricing Little fixed infrastructure
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. . or more complicated Some Examples Simple
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Some More Examples RFiD ANPR ETC -ERP
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Some More Examples 17 lane toll plaza
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Tolling Technology Pre-purchased tickets & vignettes Pre-paid cards
Tags & Transponders using RFiD – Radio Frequency identification Drive-through automatic payments at gantry or toll plaza Linked to on-line accounts, debit cards & cellphone SMS Growing use in America, Europe, Asia - Singapore - & Africa - RSA & Mozambique Stockholm Congestion Charge ANPR (automatic number plate recognition) London Congestion Charge, enforcement of other systems, video toll collection, BUT needs readable number plates GNSS - Global Navigation Satellite System: many examples: Used to collect tolls on 1.4 million trucks on 12,000 km of motorway in Germany; 22.7 bn veh/km per year
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Tolling Technology - GNSS
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Tolling Technology Tolling is just part of the system – technology also used for: Automatic Vehicle Identification (AVI) Automatic Vehicle Classification (AVC): options include Inductive loops, Laser scanner, Weigh-in-motion, Video or Tags Transaction Processing – Tolling – fee collection Violation Enforcement A combination of systems will normally be required for identification, collection & enforcement Consider interoperability & compatibility between systems – national & regional
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e-tolling Opportunities
Technology can be used to introduce flexible toll rates Incentivize changes in commuting timetables; Optimize highway usage; Maximize revenue, and Opportunity to toll urban & congested roads, where most traffic is: Dynamic or Value Pricing – toll linked to real-time traffic volume Variable Toll – discount or surcharges linked to fixed times of day: rush hour or off- peak travel
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Benchmarking Tolling Study considers toll collection practices in North, Central & South America, Asia & Europe Data from 43 public & private agencies, covering 30,000 km of road & 500 toll plazas Only 9% of agencies use cash-only tolling 91% of agencies use some form of ETC /pdf/2015/06/kpmg-toll-benchmarking- study-2015-v2.pdf
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References Technology Scan for Electronic Toll Collection, Toll Collection Technology and Best Practices, Electronic Toll Collection: Approaches, technologies, experiences, An evolution of tolling, KPMG, 2015 Toolkit for Public - Private Partnerships in Roads & Highways, PPIAF, 2009 Executive Brief: Tolling Principles, PPIAF, 2014
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