Road User Pricing, Congestion

and the Community —

A Global View

Future Trends Urban Growth — Since 2007, greater than 50% of people live in cities. By 2030, the estimate is greater than 60% will live in urban centers. Australia’s eight major urban centers may be closer to 70%.

Energy — Urban centers occupy less than 2% of the land mass, but consume 75% of the energy. Smart Grids and energy efficient transport will address this growth. Fuel Prices will drive transportation transformation.

Transportation DNA — All modes of transport will switch over to electrification with regenerative subsystems, drives and new designs. Fuel efficiency will increase dramatically.

Convergence — Technology will continue to converge. Digital media, communications and connectivity will be ubiquitous.

Greater Wealth — Markets driven from urban centers of businesses and headquarters with more political clout and economic impact

Greater Urban-Rural DIvide — More contention over social issues stemming from 60-40 and 70-30 splits.

Greater energy domination — Demands need to be met and increase in technological solutions, Smart Grids, renewable energy and conservation of all resources. More easily achieved in Urban centers than rural / suburban environments.

Greater Congestion in and into Urban Centers — Supply and demand out of balance and spending will not keep up.

Greater Convergence — Demands in everyday life styles will dictate more and more convergence based on information and smart choices.

More Public Transport — Demands will be satisfied in inner cities, less the further out.

Urban Growth

Energy and GHG Emission Trends

For the near to mid-term future, petrol and diesel

will be the main automotive fuel

As a first step, we are drastically reducing fuel consumption and CO2

emissions of petrol and diesel cars through technical innovation and

increased efficiency

2025 2000 2050

Automotive fuel perspective

What makes full hybrid efficient?

Energy - Smart Power Grids

Choice: Hybrid TechnologyStrategic (with applications in many future technologies)

Engine

Fuel

tank

Motor

Battery

Engine

H 2

tank

Motor

Battery

FC stack

HEV

Engine

Fuel

tank

Motor

Battery

EV

Engine

Fuel

tank

Motor

Battery

PHEV FCHEV

Using hybrid technology for PHEV, EV and FCHEV

Vehicle efficiency — Vehicle Fleet efficiency gaining by over 4% per annum compared to 2 percent previously and 3% most recently. Electrification of Vehicle — Drive Steering Regenerative braking Form factor

Composite Materials — Lighter and stronger Adds to vehicle efficiency Supports new innovative design

Transportation DNA

The rapid global increase in vehicles, will…

Source: Handbook of automotive industry 1999

…. further increase CO2 emissions

Source: IPCC report 2007

CO

2 d

en

sit

y (

pp

mv)

Industrial Revolution

280 ppm

379 ppm (2005)

450 ppm EU target

(~2° Celsius)

A powertrain map for future mobility

PHV

FCHV

FCHV(BUS)

Regional

Mobility

Urban

commuters

EV

Winglet

Veh

icle

siz

e

Delivery

trucks

Heavy-duty

trucks

Small delivery vehicles ｉ series

Personal

Mobility

FCHVs

EVs HVs & PHVs with

internal combustion engine

Driving distance

Gasoline, diesel, bio-fuels, compressed

natural gas, gas to liquids, coal to liquids, etc. Electricity Hydrogen Fuel

HV

EleCycles

Suburban

Commuters

Integration of transport modes

Des

tinat

ion

Personal

Mobility

Intercity

City center ～ inner city

Mobility distance

Sp

ee

d

Commuter

Car-sharing

PHV / HV

International train

Local train

City Zone

Clean bus

Private Own Vehicles

Fueled cars Tram

Fuel Cell Hybrid bus

Suburbs

Regional

EV

Taxi

Rail

Convergence of payment methods

Near Field Communications (NFC) enables mobile user cases

with attractive revenue opportunities for transportation and

adjacent service industries

Vehicle Connectivity — Vehicle will connect with the internet and use GPS for travel and travel information. Internet Vehicles — will use: Route guidance Traffic prediction models Payment methodology Data for entertainment

Users will demand — Same connectivity they have at home

and office Ability to connect to data bases Information on parking, location based

services and recharging

Convergence

17

Sydney

3.7 billion hours wasted in the USA per annum

2.3 billion litres of fuel wasted

This shouldn’t just be a “fact of life” – this is about QUALITY OF LIFE!

“We’re headed into the “perfect storm” — the

eventual collapse of the nation’s surface transport

program.

There are three main factors accounting for it:

•Declining transportation revenues;

•Increasing costs of renewal, replacement, or expansion; and

•The growing dependency of individuals and business on automobiles and

trucks.” *

* Joseph M. Giglio, Driving Questions, page 47

23

Growth of the UK “Perfect Storm”

24

Creation of the “Perfect Storm” in the UK

25

Impact of the UK “Perfect Storm”

Government Solution ?

26

EU picture of the “The Perfect Storm”

Source: Future of Transport, EU White Paper, February 2009

Freight Transport Passenger Transport

Divisions of Road Congestion & Causes

Generally 50-50 measure

Bottlenecks &

Recurring

Congestion

40% Traffic

Accidents / Incidents

25%

Special Events Signal Timing

Road Works

Bad

Weather

10%

15%

5% 5%

Source: “Investment Opportunities for managing Transportation Performance through Technology” US DOT ITS JPO, January 2009.

50% can be solved by ITS; 50% is solved by Demand Management measures

29

“We can't solve problems by using

the same kind of thinking we used

when we created them. ”

Albert Einstein

Changing Attributes of Future Next

Generation Mobility

Car focused, user-focused

Limited service model

Internal Agency focus

Single payment method

Limited integrated network

Financially subsidized

Closed architecture

Basic Informational

Management

Today Holistic travel focus for the client

Expanded shared service model

Public & private partners

Multi-media payment methods

Extensive & multi-modal network

Public & private revenue

generation

Open architecture

Advanced & highly integrated

Information Management

Tomorrow

Future Mobility

Future Mobility means more than just commuting or single purpose journey. Analysis of local issues and industry trends demonstrates that Energy, Environmental Impacts, Commercialization, Information Management and Social Policy will drive change and create true Customer Choice and tangible value to users and providers alike.

Oregon VMT - The next Generation

RUFTF — Joint Senate/House, Republican/Democratic, Public/Private committee

RUF Pilot Project (’05-’06) — Successful demonstration of a transition strategy for paying mileage at the pump

HB2328—Legislation to mandate VMT tax for EV/PIHV/HV starting 2015 using location-base and non-location-based technology solution in an open system architecture model

SB2138 — Senate Bill to empower RUFTF and ODOT to fund continued development and pilot tests for VMT.

Revenues are not keeping pace with VMT growth

1970 1974 1978 1982 1986 1990 1994 1998 2002

-100%

-50%

0

50%

100%

150%

200% Vehicle Miles Traveled

Population

2006

Gas Tax Revenue

Comparison of approaches - USA Washington State — In PSRC Vision 2040 Plan, a movement to charging all vehicles

on all roads via:

HOV to HOT Conversion

Tolling of Bridges

Facility charging on previous HOT facilities

All Vehicles by distance based charges

Oregon — Integrated RUC into State ITS Architecture for Open Systems

Leverage Commercial Vehicle Experience

Start with VMT for EV/PIHV/HV and design state wide system; add vehicle groups

as system expands.

Add Toll Roads and Bridges as needed via PPP and State Projects (Mostly bridges)

Add Express Lanes on approaches to major centers

ODOT-OIPP “TRUE” System

The TRUE Device in the truck records the following:

Latitude and Longitude Coordinates Date and Time Unit ID Number Odometer Vehicle Weight/Axle Combination

Oregon Pilot Study

Public Concerns with Pilot Test

Privacy Discomfort with technology

Age related tendency

A government mandated device

Confidence in System & Government Efficiency

Fairness

Perceptions of large and costly

Bureaucracy

Provide choices to motorists Flat Rate

Rate Equity

VRUC System Objectives

Make the system simple and easy to use

Design the data collection and payment system to

access existing processes familiar and acceptable to

the public

Provide choices to motorists

“Closed System” Characteristics

•An internally integrated system

controlled by a single entity with

essential components that cannot be

substituted by other external

components, which could perform

the same functions.

Closed System Architecture Model

“Open System” Characteristics

An integrated system based on

common standards and an operating

system accessible to the marketplace

whereby components performing

the same function can be readily

substituted or provided by multiple

providers.

Open System Architecture Model

Non-Qualifying Accounts

Commercialization Opportunities will drive economic growth,

productivity & user choice and flexibility beyond traditional

revenue models

Customers: Increased convenience & new retail options through value-rich propositions Providers: Positive revenue supports expansion, job creation & improved services

Retailers: Increased brand awareness, sales and leverage of end-to-end transport value chain Government: Decreased subsidies to transportation, better long-term planning of infrastructure and O&M

Oregon VMT - A simple Mandate

Motorists: mandated to periodically provide mileage data to billing agency User Choice: Motorists choose manner of compliance from approved methods Undifferentiated mileage charged a single, composite rate. Differentiated mileage charged by itemized components of composite rate Commercial Partners: Trusted Third Party Service Providers supply account management, location-based technology and value added services

Protect Oregon’s Future Revenue Picture

Thank You!

Jack Opiola+1 (703) 622-6446

jack.opiola@dartagnan .com