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85 comes closest to the others analyzed appears to be lower cost August 31, 2008), Toll Collect reported revenue from the primarily by not meeting this requirement. The second is that German government of t581 million, employment of 531, it would be possible to simply charge for distance driven at a and about 640,000 trucks equipped with an OBU. Based on much lower cost than the system designed. Nevertheless, this the reported numbers, the annual operating cost is about system would still be quite expensive. There were a number of 25% of revenue, or just over t 900 per equipped vehicle. alternative systems discussed, but some idea of the limitations While the operating cost covers all of the manual and Inter- can be demonstrated by describing one of the low cost alterna- net toll collection as well, the cost per vehicle is high relative tives. It would be based on a written logbook of mileage by the to revenue that is likely to be collected from light vehicles. The driver that would also require an OBU to verify the mileage annual cost seems to have been fairly stable for the first 3 years reports. This system would be lower in cost, but it would of operation, but news releases indicate that operational effi- impose compliance costs on users and have substantial limita- ciencies are being pursued to lower these costs. tions relative to the goals specified for the pricing system. 4.5 Cost Estimates for Cordon 4.4.4 Costs of Other Mileage-Based Pricing Systems Systems In the implementation of cordon pricing systems, the largest As noted earlier, some mileage fee systems are in use for single roadblock has typically involved political rather than heavy vehicles. Both IFTA and the Oregon weight-mile charge technological concerns. A number of these systems first began rely on self-reported mileage data. These systems have rela- as pilot programs and were later adopted (e.g., Stockholm) or tively low administrative costs but do not appear to be a good discarded (e.g., Hong Kong) after public sentiment was con- basis for comparison since there appear to be substantial issues sidered. The major issues that have been raised to date include with the use of self-reported mileage data. In particular, if the user costs, capital costs, fairness, enforcement, and privacy charge is expected to differ by jurisdiction, time of day, or concerns. Cordon charge systems have generated considerable other characteristics, then verification and enforcement of debate, especially in regard to the fee assessed on local residents self-reported data become extremely difficult. living within the zone compared with the fee imposed on non- The German mileage system provides a much better basis residents living in suburban areas who travel into the conges- for comparison. This information was indirectly included in tion price zone during peak hours for work, education, or the estimates generated for the Dutch system since the com- shopping. A separate question has involved the assessment of panies managing the German system were among the data fees for through and multiple trips. Table 30 summarizes the providers. However, the limited number of vehicles and the general framework and main objectives of some of the conges- focus on specific roads make the cost comparisons somewhat tion pricing systems in place around the world. problematic. Nevertheless, there is substantial interest in the The general trend of the systems examined has been a tem- German system so basic data were collected. porary reduction in congestion, which has typically returned In January 2005, the German truck toll system was initiated. to historical levels over time. With the reduction in traffic, The system is managed by a company called Toll Collect. Most there has been a related decline in vehicle emissions. Given the of the tolls are collected via an OBU that tracks usage of the recent implementation of these systems, it is too early to deter- tolled roads and reports toll information to a billing system. mine whether this is a sustainable trend or merely a short- Trucks not equipped with an OBU may pay tolls in advance term effect. Another potential issue is the economic impact of either over the Internet or at one of over 3,500 toll-payment cordon price zones, particularly on retailers within the zone terminals. Tolls are levied on about 12,000 km of German who rely on outside traffic for business. In studies conducted autobahn as well as major trunk roads. The tax is based on by the operating agencies, it has generally been found that the kilometers driven, number of axles, and the emission category implementation of the cordon zone areas has not had a nega- for the truck. The charge averages about t 0.135 per kilo- tive impact. meter. Collections average about t 2.4 billion per year. The Based on a limited sample of cordon pricing systems, the initial investment by Toll Collect is estimated at t 700 mil- cost of administering the system, collecting revenues, and lion. It is estimated that by 2008 about 650,000 vehicles were enforcement is in line with the costs associated with tolling equipped with the OBU, accounting for about 90% of the systems in the United States and Canada. Given their relatively revenue collected. Enforcement is generated from about long implementation history and demographic characteris- 300 toll checker gantries and a mobile enforcement fleet of tics, the Oslo and London congestion pricing systems serve as about 300 vehicles ( reasonable comparators with tolling systems. For the Oslo sys- Charges by Toll Collect to the German government reflect tem, operating costs averaged about 11% of total revenues, the cost of operating the system. For fiscal year 2008 (ending while the London system averaged about 55% of revenues. For