Pricing Traffic: Pacing Growth

Robert T. DunphyRobert T. Dunphy

Senior Resident FellowSenior Resident Fellow

Urban Land InstituteUrban Land Institute

Pricing in America

Where transit was in the 1980sWhere transit was in the 1980s Few new systems –Many in the worksFew new systems –Many in the works Debates raged about new transit Debates raged about new transit Pricing today - one experience (London) Pricing today - one experience (London) Few new toll roads and HOT lanesFew new toll roads and HOT lanes Debate over successDebate over success

New Tools Are Welcome

Fiscal, institutional, political Fiscal, institutional, political Charge it and they will go awayCharge it and they will go away Reinvented and made palatable Reinvented and made palatable Cities leading the way Cities leading the way

Metro Area Consumer Spending - 2001

Mia

mi

0%

10%

20%

30%

40%

50%

60%

San D

iego

Tampa

Los A

ngeles

Miam

i

Denver

Atlanta

Phoen

ix

San F

rancis

co

Cleve

land

Chicago

Seattle

Bosto

n

Wash

., D.C

.

Philad

elphia

New York

Dallas-F

t. W

orth

Detroit

Cincin

nati

Baltim

ore

Portla

nd

Housto

n

Milw

auke

e

Kansa

s City

Anchor

age

Pittsbur

gh

Minn

./St.

Paul

St. Lo

uis

Honolul

u

% o

f H

ou

seh

old

Sp

end

ing

Transportation

Housing

London

Speeds < 15 KPM – 9 MPHSpeeds < 15 KPM – 9 MPH Public transport worst in EuropePublic transport worst in Europe Business community concerned Business community concerned New Mayor - Ken LivingstoneNew Mayor - Ken Livingstone

Campaigned on a congestion charging schemeCampaigned on a congestion charging scheme ““Red Ken” won, and followed through Red Ken” won, and followed through Skepticism Skepticism -“Business community hates it”.

Smooth Start

Photos matched against payersPhotos matched against payers Citations sent , challenges adjudicatedCitations sent , challenges adjudicated Unprecedented effect on trafficUnprecedented effect on traffic

Six Month Results

16 % fewer cars16 % fewer cars 30% less delay30% less delay 13% faster journeys, more reliable13% faster journeys, more reliable Expanded bus - 50-60 % of the tripsExpanded bus - 50-60 % of the trips Bus speeds and reliability increasedBus speeds and reliability increased

Political risk rewarded

Growing political support - Growing political support - 50% support50% support 30% oppose30% oppose

70% of Londoners consider it has been 70% of Londoners consider it has been effective in reducing trafficeffective in reducing traffic

25% poll advantage25% poll advantage

Lessons for America

Extraordinary political leadershipExtraordinary political leadership Careful advance research Careful advance research Strong public awareness campaignStrong public awareness campaign

Minnesota

Considered since 1994Considered since 1994 Political problems Political problems Value Pricing Advisory Task Force in 2001Value Pricing Advisory Task Force in 2001

HOT lane on InterstateHOT lane on Interstate Variable pricing on bridgeVariable pricing on bridge Reconstruction routeReconstruction route

Stars lined up politically Stars lined up politically Legislature actedLegislature acted Revenues target to transit originally, splitRevenues target to transit originally, split

First HOT lane I-394

Growing congestion—open HOV lanes Growing congestion—open HOV lanes Vary Price to assure high speeds Vary Price to assure high speeds Public/private partnership Public/private partnership Carol Flynn, Fmr State Senator –Carol Flynn, Fmr State Senator –

the only way to add capacity for general trafficthe only way to add capacity for general traffic Convincing public requires a demonstrationConvincing public requires a demonstration Similar debate over light railSimilar debate over light rail

Seattle 205 miles car pool lanes205 miles car pool lanes Growing congestionGrowing congestion Underused HOVUnderused HOV Options:Options:

I – 5, 405, 90I – 5, 405, 90 SR 167SR 167

State Route 167

9-miles - Auburn to Kent on east side 9-miles - Auburn to Kent on east side 50% increase in HOV lane capacity50% increase in HOV lane capacity Faster speeds in gp lanesFaster speeds in gp lanes Conversion from single HOV lane to a HOT lane Conversion from single HOV lane to a HOT lane

with multiple accesswith multiple access Auburn Mayor Pete Lewis: “desperate”. We have Auburn Mayor Pete Lewis: “desperate”. We have

to look at every option that is available.to look at every option that is available. transportation commission – Nov 14transportation commission – Nov 14

HOT in Seattle

Natural spot for innovationNatural spot for innovation Importance of political supportImportance of political support High opportunity of successHigh opportunity of success Congestion problem with capacity to sellCongestion problem with capacity to sell

Tolls – New Tool

Light Pricing – Hot lanesLight Pricing – Hot lanes Deep Pricing – London, NYCDeep Pricing – London, NYC Price Suburban Extensions - ReasonPrice Suburban Extensions - Reason Transportation ConnectionTransportation Connection