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78 20.0% $0.30 18.0% $0.25 16.0% 14.0% $0.20 12.0% 10.0% $0.15 8.0% $0.10 6.0% 4.0% $0.05 2.0% 0.0% $0.00 DRJTBC NYSTA Greenway OTC FTE DTR ISTHA SR-91 NJTA NTTA % Revenue $/Transaction Source: Jacobs Engineering Group, 2010 Figure 41. Enforcement costs by toll agency, 2007. the toll-collection system, which may be expanded over time as 4.4.1 Types of VMT Fees the toll facilities are expanded or new roads are added to their Many types of charges may be considered to be a form of respective systems. charge for VMT. For example, many toll facilities charge the In contrast, more mature toll agencies may decide to toll based on the distance traveled on the facility. However, gradually retrofit existing tollbooths and traffic lanes to this section is concerned with systems that charge for all VMT ETC (e.g., OTC) or continue to expand ETC toll collection for a vehicle. The charge may be flat or it may vary based on to increase transponder penetration and improve traffic class of road, time of day, direction of travel, characteristics flows (NTTA, OOCEA, FTE, and Toronto 407). Given these of the vehicle, or geographic location. Interest in such com- differences, an accurate comparison of capital-costrelated prehensive charging systems has grown over time and has expenditures for toll-road agencies may be too difficult to accelerated recently. For example, the National Surface Trans- achieve. portation Infrastructure Financing Commission recommended Table 27 provides a sample of capital costs associated with that Congress look toward using a VMT system as the major toll collections incurred by seven toll agencies during the source of surface road funds in the future. In addition, the 2003 through 2007 time period. Dutch proposed moving to a comprehensive VMT-based charging system for all road use in the Netherlands by 2016. 4.4 Cost Estimates for VMT Fees While the current government does not plan to implement road pricing, substantial work was completed to determine if This section presents cost estimates for VMT fees based on it was a feasible option. the proposed Dutch VMT systems and also discusses the types Actual experience with VMT systems, other than weight- of VMT fees in practice today. It also presents the method mile taxes, is sparse. There have been some experiments in the for generating the cost data in the Dutch VMT fee systems, United States with such charging systems, and heavy vehicles presents cost classification and cost data, and discusses costs of have some of their charges levied based on VMT. However, other mileage-based systems. the actual experience provides very limited information on

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79 Table 26. Tolling--total operating cost and revenue (in $000s). Cost Item/Tolling Average 2003 2004 2005 2006 2007 Agency over Years Total Operating Cost DRPA $29,460 $32,362 $31,516 $32,909 $33,994 32,048 DRJTBC 25,627 25,428 30,554 30,919 28,132 Dulles Toll Road 36,758 34,737 38,639 36,711 Greenway 9,706 13,164 10,868 12,468 11,552 E-470 21,393 29,180 25,746 26,419 36,717 27,891 FTE 227,238 254,883 258,891 247,004 ISTHA 127,900 134,995 148,808 149,949 164,888 145,308 NJTA 230,141 316,896 326,309 341,768 365,797 316,182 NTTA 48,796 52,794 61,047 54,212 NYSTA 160,820 173,726 182,406 212,303 194,960 184,843 OOCEA 38,027 45,620 46,211 52,563 52,206 46,925 OTC 64,071 67,333 73,057 72,035 73,468 69,993 San Diego I-15 2,225 1,541 1,385 1,717 SR 91 12,607 14,506 15,078 15,447 14,410 Toronto 407 62,825 66,141 68,800 67,945 86,522 70,447 Average over agencies 91,830 83,109 84,731 90,423 95,157 85,825 Total Revenues DRPA 130,399 139,471 141,057 143,843 144,835 139,921 DRJTBC 78,856 79,421 80,154 85,503 80,984 Dulles Toll Road 43,727 65,533 64,931 58,064 E-470 58,895 73,584 77,788 92,185 94,373 79,365 FTE 598,762 647,959 681,615 642,779 Greenway 40,725 45,433 55,294 55,925 49,344 ISTHA 433,495 418,721 612,237 585,095 608,440 531,598 NJTA 606,620 747,932 751,381 784,919 796,259 737,422 NTTA 177,472 191,434 202,676 190,527 NYSTA 427,184 439,583 511,191 554,363 540,321 494,528 OOCEA 154,726 169,725 178,830 194,292 204,641 180,443 OTC 182,740 192,451 182,014 186,945 200,471 188,924 San Diego I-15 2,211 1,617 1,496 1,775 SR 91 32,375 39,584 44,238 49,838 41,509 Toronto 407 265,511 318,109 361,995 391,375 525,365 372,471 Average over agencies 282,446 241,048 253,540 267,950 283,779 265,753 how a large-scale system would function and what it would high due to development costs and the small scale of produc- cost. Hence, this section will focus largely on the data gener- tion. Large-scale, standardized production should result in ated in support of the Dutch proposal, but it will start with a lower cost per unit, but it is difficult to determine what this brief discussion of the other information available. lower cost would be. In addition, the experiments typically do The FHWA Value Pilot Pricing program has sponsored not actually charge participants. Rather, they set up accounts several experiments that looked at alternatives for distance- against which charges are levied, with the participant getting based pricing. They take fairly different approaches, although any remainder at the end of the experiment. This gives the all are based on some form of GPS location device to deter- appropriate marginal incentives to participants and allows for mine how mileage charges should be allocated. collection of behavioral data; however, there are no issues Unfortunately, cost data based on experiments have very with evasion, nonpayment of bills, or enforcement of the sys- limited usefulness. While information from these experiments tem. Hence, cost data from such experiments are not well is useful, cost data based on experiments have substantial lim- suited for comparison to the actual cost of other revenue col- itations. The cost of the experimental units tends to be quite lecting systems.

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80 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% DRJTBC DRPA Greenway DTR E-470 FTE ISTHA NTTA NJTA NYSTA OTC OOCEA SANDAG SR-91 Toronto Average 407 -10.0% % Revenue -20.0% Source: Jacobs Engineering Group, 2010 Figure 42. Operating margin by toll agency, 2007. Table 27. Toll agency capital costs. Toll- Cost/Per Total Capital Road Improvement Cost/Year Centerline Costs Agency Mile CTRMA Design and installation of an ITS system $20,010,000 $10,005,000 $1,725,000 Dulles Toll-collection equipment 56,137,545 11,227,509 4,009,825 Greenway FTE Intelligent Transportation System and Fiber Optic 166,200,000 41,550,000 $618,369 Improvements, Mainline Intelligent Transportation System and Fiber Optic Improvements, Polk and Suncoast Addition of Sun Pass Lanes Open Road Tolling Plaza and Express Lane Conversion, Sawgrass Open Road Tolling Plaza and Express Lane Conversion, Mainline Toll System Technology Upgrades on the Mainline NTTA Toll equipment for Lewisville Lake Bridge and the 5,742,321 N/A N/A NTTA system OTC Conversion to ETC 9,703,412 9,703,412 N/A OOCEA Toll equipment and buildings 156,978,000 31,395,600 1,569,780 Toronto Toll equipment, transponders, operations center, 182,856,744 20,317,416 2,728,788 407 office equipment, and computer equipment Sources: CTRMA (2005), Florida's Turnpike System (2007, 2008), NTTA (2007), OTC (2007, 2008), OOCEA (2007), Toll Road Investors Partnership (2007), and 407 International Inc. (2007).