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OCR for page 64
52 I N T E R N AT I O N A L P E R S P E C T I V E S O N R O A D P R I C I N G under consideration include a regional dedicated truck- Given our specific research question, no estimates, way system and enhanced regional rail capacity. Prelimi- regardless of these approaches, were available from pre- nary financial analyses show that each of these capacity vious studies or data. Absent the necessary revealed options would be essentially self-supporting with reason- preference information, a sample was constructed from able tolls or other movement charges given certain public several trucking industry sources to conduct a survey. debt issuance arrangements, such as tax-exempt revenue Interviews were conducted by using an adaptive stated bonds, loans made available under the Transportation preference survey to derive an estimate of the value of Infrastructure Finance and Innovation Act federal credit time to the nearest dollar. program, and, potentially, tax credit bonds. A tobit model was fit to the data from the interviews With these investments in new goods movement to derive the estimate for value of time. A mean of $49.42 infrastructure facilities, the anticipated increase in aver- was found, with a 95% confidence interval from $40.45 age truck delay on the region's transportation system to $58.39. Variation in the distribution of values is largely through 2030 could be averted, with future delays held undetermined with the exception of fleet operation, to a reasonable level. Furthermore, the economic effects whether it is a for-hire truck fleet or a private truck fleet. of these infrastructure investments would benefit the In addition to deriving estimates for commercial vehi- region in terms of employment and revenues. cle operators' value of time, which can now inform pol- icy decisions concerning the spring load restriction policy, the analysis helped illuminate the advantages of TRUCKS' VALUE OF TIME: IMPLICATIONS FOR an adaptive stated preference study in comparison with CONGESTION AND WEIGHT LIMITS traditional stated preference studies. The current state of the art in using stated preference methods to evaluate David Levinson the value of time uses a fee structure in exchange for time savings, in most cases a toll. It has been shown that Minnesota's spring load restriction policy, which places stated preference methods typically underestimate the strict limitations on commercial vehicle weights during true value of time, since the use of a fee structure fails to the spring thaw, has been in effect for more than 50 account for subjects who avoid paying additional fees years. Throughout this time, almost no consideration for a public good that they may believe they pay for in has been given to the cost that the policy imposes on the the form of taxes. The fine structure included in the freight industry. However, the state has now commis- adaptive stated preference study we used for this analy- sioned a costbenefit study to examine the policy's sis helped account for these otherwise "missing" sub- necessity. The costbenefit analysis includes estimates of jects and provides a greater estimate for value of time freight demand and user costs, which are calculated as than do previous studies. the difference between total travel time and vehicle miles traveled with and without the policy in effect, with this difference then multiplied by the value of time for com- ROAD PRICING AND URBAN FREIGHT IN mercial vehicle operators in Minnesota. The users' value EUROPE: PRACTICES AND DEVELOPMENTS FROM of time is an essential component, since the policy has THE BESTUFS PROJECT numerous impacts that can make freight movement much more time consuming. For example, vehicles com- Martin Ruesch plying with the policy must shift seasonal timing of ship- ments, reduce load size per vehicle, change vehicle types, The BestUFS project (Best Urban Freight Solutions) has or change routes, all of which can impose additional run for 4 years, from 2000 through 2003. Besides costs on commercial vehicle operators. addressing other urban freight issues, it examines devel- Researchers have studied the value of time for more opments in pricing freight movements specific to urban than 40 years. Four methods to discern users' value of areas throughout Europe over the years. Extensive time are in common use. Estimates of net operating profit information on the BestUFS project can be found at fix vehicle and labor costs so that with improved speeds, a vehicle will be able to travel farther in the same span of A few of the lessons learned to date are as follows: time and contribute more profit to the company. Cost savings models are based on a reduction of those costs Freight transport's share of the overall transporta- that do not vary with miles of operation. Cost-of-time tion sector will increase in the coming years, and this will estimates determine the cost of providing time savings. be true both for urban areas and for interurban trips. And finally, the willingness-to-pay approach considers Therefore, an understanding of the structure of the freight individual choices when respondents are faced with a transport industry, travel patterns, the local framework, decision between time savings and other benefits. the structure of the urban area, and existing access regu-

OCR for page 64
U R B A N F R E I G H T T R A N S P O RTAT I O N 53 lations is critical for proper design and implementation of focused on interurban freight movement, the approach a road pricing scheme. could be adapted to urban areas. The main objectives The value of time in freight transport is 5 to 10 have been the internalization of external costs and times higher than for passenger transport. Moreover, demand management. The fee depends on the distance the price elasticity for freight movement is low in urban driven, the vehicle's maximum gross weight, and its areas; the possibilities for altering transport patterns are emission category. For a 40-ton truck the fee is about limited because of access regulations, shippers' 0.40 per kilometer (20012004) and will be 0.65 per demands, and limited modal alternatives. kilometer (after 2005)--about four to six times higher European approaches to road pricing for urban than the planned fee in Germany. About 70,000 vehicles freight are heterogeneous. The United Kingdom, Nor- are affected by the fee daily, and about 57,000 vehicles way, and Italy lead the field in applying road pricing to are equipped with an onboard unit to permit electronic freight vehicles. Switzerland (2001), Germany (2004), collections. With relatively low capital and operations and Austria (2004) have introduced or are planning costs, collection costs are about 4% to 6% of the rev- distance-based heavy vehicle fees. enues. Two-thirds of the net revenues are used for The range of approaches includes single road pric- financing large-scale public transportation projects, and ing (e.g., Norway, France), cordon pricing (e.g., Norway, one-third are directed to the cantons to cover road Italy), network pricing (e.g., Germany), and area pricing transport costs. Positive effects identified during the first (e.g., United Kingdom, Switzerland). While each 2 years of operation include beneficial fleet adaptation, approach has advantages and disadvantages, they tend to organizational changes, and alternative route and mode be selected on the basis of local conditions and political choices. reality rather than economic theories. Financing of infrastructure (e.g., Norway, France, The following is a summary of the main findings: Germany) and demand management (e.g., United King- dom, Switzerland) are the main objectives. Suitable pricing schemes for urban freight trans- Despite urban freight's increasing share of the port yield reliability and travel time benefits that exceed transportation sector and its importance for the regional the costs. economy, road pricing projects continue to focus on Road pricing can improve the efficiency of urban passenger transport. freight movement and foster more sustainable logistics The London congestion charging project, in place and distribution strategies. since February 2003, provides an interesting illustration A demand management approach can generate of the impact of political realities on system design. Orig- more benefits for urban freight transport than a financing inal plans called for a freight vehicle charge of 15, com- approach. pared with 5 for cars, which was estimated to represent Urban transport policy, not only for passenger but about 3% to 5% of the daily costs of truck operations. also for freight, ought to address road pricing. During the consultation process the transport lobby Urban freight issues should receive greater attention reached a reduction from 15 to 5. Since implementa- during the development of road pricing strategies and tion, the reduction of travel times (by 14%) and the should acknowledge access regulations, emissions cate- improved reliability (by 30%) are important benefits for gories, vehicle sizes and types, and ultimately differentiated urban freight transport. Before implementation the trans- load factors depending on a vehicle's configuration. port sector had great doubts, but since implementation Charges for freight vehicles should be higher than acceptance has improved remarkably. for private cars. The Swiss Heavy Vehicle Fee, in place since Janu- Early attention to interoperability of selected pric- ary 2001, provides a fine example of successful intro- ing systems is critical for preventing later discoveries of duction of distance-based heavy vehicle pricing. Though incompatible approaches.