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An Overview of Road User Charging Systems
Polish Ministry of Transport and World BankPolish Ministry of Transport and World BankWorkshop on Road User Charging SystemsWorkshop on Road User Charging Systems
Cesar QueirozCesar QueirozRoads and Transport Infrastructure Consultant Roads and Transport Infrastructure Consultant
World BankWorld BankWarsaw, Poland11-12 June 2007
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Presentation Outline• Alternative road finance methods• Why user charging systems?• Historical overview• Some currently used charging
systems• How private financing can help
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Alternative Road Finance Methods
RehabilitationMaintenance
Construction
Road Funds
Public - Private Partnership
Private FinanceBudgetary Sources
ConstructionRehabilitationMaintenance
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Why User Charging Systems?
• Reduce congestion
• Generate revenue
• Increase investment in transport infrastructure
• Apply the “users pay” principle
• Provide “value for money” (VfM) to paying users
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Historical Overview• Toll road at Wadesmill in Hertfordshire, UK,
established in 1663 by Act of Parliament
• 19th century concessions: toll roads, bridges, tunnels in US; railways in France; subway in London
• Suez (1860) and Panama (1880) canals
• Decline around 1930 (great depression)
• Resurgence in the 1980s: collapse of the state-owned monopoly paradigm
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The Maysville Turnpike, USA, 1830
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U.S. 1 in South Carolina, 1921
A toll house at the approach to a bridge
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Backup at Toll Plaza
Bay Bridge toll booths, beach-bound traffic
August 1999
Source: The Washington Post
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Riverside Freeway, SR 91, CA• First fully automated toll road (free-flow
system), 16-km long, opened on December 27, 1995
• Serves commuters on Riverside Freeway (SR 91), Orange County, south of Los Angeles
• Original developer and operator: California Private Transportation Company
• Achieved cash flow break-even in mid-1998 (can pay operating and debt expenses from revenues)
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Riverside Freeway, SR 91, CA
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SR 91 Express Toll Lanes
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SR 91 Express Toll Lanes
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SR 91 Express Toll LanesTypical PM Peak
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Toll Collection System: overhead antennas and transponder
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Windshield-mounted Transponder
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FasTrak Transponder
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Heavy Goods VehicleCharging in Germany
• Since 1 January 2005, all trucks exceeding 12 tons pay for each kilometer of motorway traveled
• Fee is based on emission classes and number of axles
• GPS-based “on board unit” (OBU) mounted on a truck
Source: http://www.tollroadsnews.com/cgi-bin/a.cgi/rwXBNl0REdmcEIJ61nsxIA
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Objectives of Heavy Goods VehicleCharging in Germany
• To introduce infrastructure charging based on the “user pays” principle
• To secure funding for the further upgrading and maintenance of transport infrastructures
• To provide an incentive to shift freight traffic to the rail and waterway modes, in the interests of the environment, and to deploy HGVs more efficiently
• To promote innovative technologies
Source: Edith Buss, “The German Tolling Prospects,” Poland MOT and WB RUC Workshop, June 2007
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Cameras Should CatchToll Road Cheaters
• Virginia DOT has installed a $7.6 million camera system at booths on the Dulles Toll Road and other pay-to-drive highways
• Violators are confronted, since January 2007, with a picture of their license plates taken at the time of infraction
• Cheat drivers on Dulles Toll Road: 1.7%; in the US: 3%
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Revenue from Users and Road Expenditures
41.144.5
33.4
7.22.8
6.1
26.7
5.12.2 1.9
05
101520253035404550
Germany UK France Norway Sweden
Revenue Expenditures
EUR billion
Source: Poland RUC Workshop Questionnaire, Country Answers
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Strategies to Increase the Impact of Available Funds
• Reduce costs: appropriate technology, competitive bidding, value engineering
• Reduce corruption• Public-private partnerships,
usually associated with an appropriate road user charging system
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Where and How Can PPP help?
• In While PPPs are not a panacea, experience in a number of countries, both in the developing and developed worlds, have shown that well structured PPPs can help a country expand its transport infrastructure without overburdening its budget
• The experience of several countries will be reviewed in this workshop
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Road Investments in Chile
0
500
1,000
1,500
2,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Year
US
$ m
illi
on
Public Financing Private Financing
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Upcoming Paper
• “An Overview of Road User Charging Systems in European Countries”
• Will incorporate results of this Workshop
• Expected in July 2007 [If not, please blame Cesar, Michel and Barbara]
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Thank you Barbara!
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Thank you!
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Cesar QueirozRoad and Transport
Infrastructure Consultant
Tel +1 202-473 8053Cel +1 301-755 7591
Email: [email protected]
www.worldbank.org/highways
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http://ppi.worldbank.org/features/feb2007/Feature1.aspx