The Interstate Tolling Conundrum – Who Pays? · 2019-05-20 · May 20, 2019. The Interstate...
Transcript of The Interstate Tolling Conundrum – Who Pays? · 2019-05-20 · May 20, 2019. The Interstate...
May 20, 2019
The Interstate Tolling Conundrum – Who Pays?Kamran Khan Senior Vice President
Presented AtIBTTA Summit on Policy and Finance
Philadelphia
The Tolling Potential
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0
25
50
75
100
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Gros
s In
ters
tate
Rev
enue
Per
Yea
r (Bi
llion
s)
Cars Trucks
Toll Rates/MileCars $0.04 $0.06 $0.08Trucks $0.10 $0.15 $0.20
Estimated Average Annual GROSS Revenue FromEntire Interstate System Tolling
(2020-2040 Inflation Adj. 2.0%)
The Tolling Potential
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$0.0
$25.0
$50.0
$75.0
$100.0
$125.0
Inte
rsta
te R
even
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er Y
ear (
Billi
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O&M NetToll Rates/MileCars $0.04 $0.06 $0.08Trucks $0.10 $0.15 $0.20
O&M Cost as% of Revenue 20.5% 13.8% 10.5%
Estimated Average Annual NET Revenue FromEntire Interstate System Tolling
(2020-2040 Inflation Adj. 2.0%)
Tolling All InterstatesMiles Tolled: 42,500AET Toll Points: 13,000Capital Cost: $65.0 BNAnnual O&M Cost: $13.0 BN
Problem Solved - So Why Not Toll?
Generally prohibited on existing free Interstates routes, with exceptions: New capacity .. New routes or new lanes on existing routes Reconstructed bridges and tunnels ISRRPP – three existing slots may come available Value Pricing Program
Charging for something that is “free” today The ‘Politics’ Double taxation Increase gas/sales taxes in lieu of tolls more efficient Low income users cannot afford to pay tolls Economic impact to businesses and economy make the region less competitive Toll Collection Traffic Diversions Toll Rates
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Toll Diversion Considerations
Toll Rates Motorist Value of Time
Key parameter Averages and distributions Varies widely by individuals, income and situation
Potential Travel Time Savings vs. Free Alternative Routes
Congestion on Alternative Routes Potential Distance Savings Current and projected Competitive
transportation improvements More Subtle Factors
Motorist familiarity Signing Safety Reliability Frequency Electronic toll collection
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Setting the Pricing Strategy
Define capital and operating costs How much are tolls expected to cover? Setting the toll is a trade off between
Revenue and Demand Develop market segments for your traffic Define pricing by market segment
Electronic Tolling vs Video Pre-Registered Un-Registered
In-State vs Out-State Passenger Cars vs Commercial Vehicles Time of Day Traffic Distribution Frequency of Use
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Robust Analytical Framework
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DATA COLLECTION Obtain/Collect traffic counts by
Vehicle Class Video Surveys – for In-state and
Out-state Obtain Travel Times Obtain Travel Pattern Information Obtain Trip Frequency Estimates
MODEL DEVELOPMENT Integrate Data Collection into
Base Year Model Update Future Year Trip Tables
Incorporate Tolling Algorithm into new Model Platform
Incorporate Values of Time Incorporate Tolling Configuration Method of Payment Distribution Toll Costs
TRAFFIC MODEL FORECAST Toll Rate Sensitivity Traffic and Revenue
Forecasts Passengers Cars and Trucks In-State vs Out-State ETC-Non-ETC Commuter Frequency Income Groups
Traffic Impacts Diversion Impacts
Several States have Studied/Implemented Interstate Tolling at Various Levels
Missouri I-70 Wyoming I-80 North Carolina I-95 Pennsylvania I-80 Minnesota Statewide Indiana Statewide Wisconsin Statewide Virginia I-81
Illinois – Chicago Metro Area Connecticut Statewide Alabama I-10 Bridge Crossing Indiana-Kentucky I-65 Ohio River
Crossing Rhode Island Statewide Oregon I-5/I-205
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Pricing Strategies Evaluated/Implemented
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FACILITY TYPE AGENCY DATE PERIOD ETC Video ETC Video TOLL SYSTEM NOTESHighways Wyoming DOT 2009 Daily 0.049$ NA 0.50$ NA Open I-80 Tolling
North Carolina DOT 2003 Daily $0.04-0.12 NA NA Open I-95 Tolling Wisconsin 2016 Daily $0.04-0.06 50 % Surcharge $0.16-0.24 50 % Surcharge Closed StatewideIndiana DOT 2018 Daily $0.04-0.07 50 % Surcharge $0.19-0.38 50 % Surcharge Closed StatewideMinnesota DOT 2018 Daily $0.04-0.10 50 % Surcharge $0.15-0.38 50 % Surcharge Closed StatewideVirginia DOT 2018 Daytime 0.075$ No Surcharge 0.150$ No Surcharge Open
Nightime 0.050$ No Surcharge 0.075$ No SurchargeConnecticut DOT 2018 Off-Peak 0.060$ 50 % Surcharge 0.252$ 50 % Surcharge Open
Peak 0.079$ 50 % Surcharge 0.316$ 50 % SurchargeBridges/Tunnels Indiana-Kentucky LSIORB 2016 Daily 2.05$ 100% Surcharge 10.25$ 20% Surchage
Alabama DOT 2018 Daily 5.00$ 40% Surcharge 20.00$ 40% Surcharge
Rhode Island 2018 Daily -$ - 3.25$ No Surchage Location 1-$ - 3.50$ No Surchage Location 2
Toll individual tractor-trailer once per general location per 24 hrs in each direction; Border to border travel on I-95 maximum toll $20.0; Maximum toll on any tractor-trailer $40
Frequency Discount for PC's 15% Discount for 20-39 transactions; 30 Discount 40 or more
$30 Annual Pass
PRICING STRATEGIES
10 % Surcharge Video Pre-registered; Frequency Discount 50% for 40 ore more transactions
PC Rates CV Rates (5-Axles)
30 % Discount for CT E-ZPASS, 20% Commuter Discount, 25% Surcharge Video Pre-registered
Summary of Pricing Strategies
All AET Facilities Passenger car per mile rates $0.04~$0.07. Comparatively low when compared to the national
average of $0.09 per mile for tolled roads Commercial Vehicles (5-Axle) charged higher per mile rates, typically 4 times that of a
passenger car toll In-State ETC registered accounts toll discounts 30% Video Surcharge typically 40-50% or more higher than ETC rates Pre-registered Video lower than Un-registered Peak rates higher than Off-Peak Rates by 25-50% Frequency programs providing discounts at certain volume thresholds Rhode Island put a maximum daily toll charge cap for plazas, through movements, individual
trucks Some consideration given to placement of plazas open vs closed, outside of metro areas
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The Impact of Tolling Toll
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Date Tolling Before Tolling Change After Tolling State/Province Facility Started Year Lanes Traffic Traffic Year Lanes Traffic FL Snapper Creek Expressway 7/17/2010 2009 4 43748 -20% 2011 4 34790IL IL 390 (US 20 to I-290) 7/5/2016 2012 4 191450 -23% July-Oct 2016 4-6 146550IN_KY Downtown Crossing 2013 7 125700 -49% 2018 12 64200
East End Crossing 2018 4 21200Total Ohio River Bridges 2013 7 125700 -32% 2018 16 85400
2/1/2014 2012 2 29000 -24% Mar-17 4 21900
VA Downtown Tunnel 2/1/2014 2012 4 91000 -16% 2016 4 76000VA Midtown Tunnel 2/1/2014 2012 2 35000 -20% 2016 4 28000WA SR -520 Bridge 12/29/2011 2011 4 93000 -25% 2016 6 70000WA Tacoma Narrows Bridge 7/16/2007 2002 4 86000 -10% 2008 7 77000
Tolls RemovedBC Port Mann Bridge 2012 2016 10 122770 27% 2017 10 155329BC Golden Ears Bridge 2009 2016 6 42501 30% 2017 6 55182
Dominion Boulevard Veterans Bridge
VA
12/30/2016
Impact of Tolling - Peak Hour Diversion SR 520
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Impact of Tolling - Peak Hour Diversion IL 390
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IL 390 Local Road Impacts
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Summary
Define purpose and need for project, clearly articulate the improvements and benefits
Significant revenue potential from Interstate tolling with relatively low tolls
Develop pricing strategies that considers various of market segments Discount programs can be developed to mitigate impact on local users Shifting higher costs to non-locals may result in higher revenue risk Finding the right balance between revenue and traffic demand Diversions will occur, mitigation strategies need to be in place Diversions in peak periods not as great when total network capacity
constrained
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