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Polish Ministry of Transport and World Bank Workshop on Road User Charging Systems An Polish Ministry of Transport and World Bank Workshop on Road User Charging Systems An Overview of Road User Charging Systems Cesar Queiroz Roads and Transport Infrastructure Consultant World Bank Warsaw, Poland 11 -12 June 2007

Presentation Outline • • Alternative road finance methods Why user charging systems? Historical overview Presentation Outline • • Alternative road finance methods Why user charging systems? Historical overview Some currently used charging systems • How private financing can help

Why User Charging Systems? • Reduce congestion • Generate revenue • Increase investment in Why User Charging Systems? • Reduce congestion • Generate revenue • Increase investment in transport infrastructure • Apply the “users pay” principle • Provide “value for money” (Vf. M) to paying users

Historical Overview • Toll road at Wadesmill in Hertfordshire, UK, established in 1663 by Historical Overview • Toll road at Wadesmill in Hertfordshire, UK, established in 1663 by Act of Parliament • 19 th 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 1980 s: collapse of the state-owned monopoly paradigm

The Maysville Turnpike, USA, 1830 The Maysville Turnpike, USA, 1830

U. S. 1 in South Carolina, 1921 A toll house at the approach to U. S. 1 in South Carolina, 1921 A toll house at the approach to a bridge

Backup at Toll Plaza Bay Bridge toll booths, beach-bound traffic August 1999 Source: The Backup at Toll Plaza Bay Bridge toll booths, beach-bound traffic August 1999 Source: The Washington Post

Riverside Freeway, SR 91, CA • First fully automated toll road (free-flow system), 16 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)

Riverside Freeway, SR 91, CA Riverside Freeway, SR 91, CA

SR 91 Express Toll Lanes SR 91 Express Toll Lanes

SR 91 Express Toll Lanes SR 91 Express Toll Lanes

SR 91 Express Toll Lanes Typical PM Peak SR 91 Express Toll Lanes Typical PM Peak

Toll Collection System: overhead antennas and transponder Toll Collection System: overhead antennas and transponder

Windshield-mounted Transponder Windshield-mounted Transponder

Fas. Trak Transponder Fas. Trak Transponder

Heavy Goods Vehicle Charging in Germany • Since 1 January 2005, all trucks exceeding Heavy Goods Vehicle Charging 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/rw. XBNl 0 REdmc. EIJ 61 nsx. IA

Objectives of Heavy Goods Vehicle Charging in Germany • To introduce infrastructure charging based Objectives of Heavy Goods Vehicle Charging 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

Cameras Should Catch Toll Road Cheaters • Virginia DOT has installed a $7. 6 Cameras Should Catch Toll Road Cheaters • Virginia DOT has installed a $7. 6 million camera system at booths on the Dulles Toll Road and other pay-todrive 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%

Revenue from Users and Road Expenditures EUR billion Source: Poland RUC Workshop Questionnaire, Country Revenue from Users and Road Expenditures EUR billion Source: Poland RUC Workshop Questionnaire, Country Answers

Strategies to Increase the Impact of Available Funds • Reduce costs: appropriate technology, competitive 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

Where and How Can PPP help? • In While PPPs are not a panacea, 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

Road Investments in Chile Road Investments in Chile

Upcoming Paper • “An Overview of Road User Charging Systems in European Countries” • 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]

Thank you Barbara! Thank you Barbara!

Thank you! Thank you!

Cesar Queiroz Road and Transport Infrastructure Consultant Tel +1 202 -473 8053 Cel +1 Cesar Queiroz Road and Transport Infrastructure Consultant Tel +1 202 -473 8053 Cel +1 301 -755 7591 Email: cqueiroz@worldbank. org www. worldbank. org/highways

http: //ppi. worldbank. org/features/feb 2007/Feature 1. aspx http: //ppi. worldbank. org/features/feb 2007/Feature 1. aspx