Showing posts with label Blog matters. Show all posts
Showing posts with label Blog matters. Show all posts

Friday, 7 August 2020

Introducing Milestone Solutions

Hi everyone, I just want to note that D'Artagnan Consulting LLP (and its Australian subsidiary D'Artagnan Pacific Pty Limited) have changed names to Milestone Solutions LLP (and Milestone Pacific Pty Limited).  


Nothing else has changed. It is easier to say, easier for others to understand, and we are still the world's specialists in road user charging.  Our new corporate website is here.

Thursday, 4 February 2016

D'Artagnan Consulting

I'm pleased to announce that I am now a Principal Consultant at D'Artagnan Consulting LLP.

I joined D'Artagnan Consulting because it is at the leading edge of advice and development of road user charging systems in the United States and increasingly in Australia, with a focus on end to end development from policy development through to support in pilot development and implementation.

I have supported D'Artagnan on its work in Oregon and Western Australia, and am currently doing so in its work with CALTRANS on the California Road Charge pilot program. 

As I have previously, I will continue to be transparent about projects that I have been personally involved in (or which D'Artagnan is advising on).  The purpose of this blog will continue to be to inform and provide commentary on road pricing matters around the world.  I have a backlog of pieces I am pulling together about various locations, with an emphasis on those with the most innovative charging - involving distance based charging in most cases.

In coming days, weeks and months the look and feel of the blog will be evolving to make the links to D'Artagnan Consulting clearer and to make it easier for you to use.

I hope you keep reading and keep informed.

Scott Wilson

Thursday, 14 January 2016

Change is coming

Happy New Year everyone.

It's been a couple of months since I posted here, because I've been pursuing some possible changes to this blog.

2016 will bring a new partnership and a lot of regular new content, with the intention being to have at least weekly content from the 1st of February, with new directories of content and regular updates from what is happening all over the world.

In the past year there have been great leaps forward made in the United States, particularly in piloting and examining alternatives to fuel tax, from distance based charging to maximising the scope of tolls.  Both heavy and light vehicle charging are expanding in Europe, and in Australia serious steps are being taken to look at transitioning away from ownership and fuel taxes to distance/weight based charging.

In Indonesia and China, particularly Hong Kong, congestion charging looks like establishing itself to address chronically severe congestion and help alleviate poor air quality.

There are no websites with consistent regular up-to-date information from all around the world about the economics, politics, policy and technical challenges about direct charging for road use.  This blog intends to become the world's leading resource for road pricing, road user charging, urban congestion charging and innovations in tolling.

Watch this space.

Tuesday, 7 January 2014

Happy New Year 2014

I wish all my readers a Happy New Year and hope 2014 brings them prosperity, good health and happiness for themselves and their loved ones.

I wish to apologise for the more haphazard level of writing in 2013.  That has been driven largely because of the tragic terminal illness of my father, who is suffering from laryngeal cancer.  I have spent some considerable time with him in the past nine months.  Secondly, work has been very busy in that time and so my free time to dedicate to this blog has been more limited than I would have liked (although I am far from unhappy about being busy with valuable work).

The past year in road pricing has seen continued growth in the application of tolling worldwide, and despite some controversy, network road pricing systems are about to be implemented in France for trucks, and in Belgium for trucks (and a vignette system for cars).  In the United States, difficulties in raising fuel taxes continue as states move forward either with expanding the application of tolls for new highways (e.g. in Texas and Florida) or in new forms of charging (e.g. Oregon's implementation of distance based highway taxation).  This appears to have percolated north, with stronger interest in forms of road pricing in Canada.

Gothenburg has now completed its first year of congestion pricing, although there is little sign of significant moves forward towards such pricing elsewhere.  More notably, Denmark seems to have backed off introducing congestion charging in Copenhagen.  

Fundamentally, the key problem faced by governments at all levels and highway authorities is that it is becoming less satisfactory to raise money from road users by taxing motor fuels, when vehicles fleets are becoming so much more efficient.  Parallel to that is growing resistance from voters to increases in such taxes, especially when they are sceptical as to whether politicians will use such revenues wisely.  Although motorists may resent them, at least tolled roads raise money for using roads directly and the revenue raised is spent on those roads.  Similarly, whilst economic slowdown in many countries has seen reduced concern for congestion, it still remains that major cities cannot significantly address traffic congestion by simply building more highway capacity or public transport capacity, but must address the underpricing of urban road capacity at peak times.  It is notable that cities such as Jakarta, Beijing and Shanghai appear to be at the forefront of considering congestion pricing, rather than those in Europe and North America.

Yet, despite all of this, there are significant challenges in convincing governments and voters of the merits of charging directly for road use.  For all of the economic arguments, there is a strong undercurrent of scepticism and resistance, as so many think that road pricing is just another way of governments to extract more money from them for little value.

When governments don't reduce other taxes or don't provide means to dedicate such revenue to (more of less) objectively defined high value projects, then I am hardly surprised.  Road pricing doesn't succeed when the whole governance, funding and management structures of roads are driven by short term political imperatives rather than delivering service to customers.  It is curious indeed that this problem is seen widely in the United States, and less widely in parts of Europe, where commercial and private sector management of major highways is more widespread and acceptable.  

Finally, it is worth talking briefly about technology.  Costs keep coming down, and most notably it is becoming clearer that there is a future in using smartphones, connected intelligently to vehicles, as a means of introducing road pricing.  It is becoming more difficult for opponents to road pricing to claim cost is a reason to reject it.  Their biggest argument remains a lack of trust towards those who would implement it.

It remains, in my view, that this is the key challenge.  In a political environment of mistrust of government, there is a need to recast arguments about road pricing in terms of changing the relationship between road users and the provision of roads.  In most jurisdictions, there remains little real useful feedback between road users and providers, and expectations remain low.  In a world where more automated road use is looking ever more likely in the medium term, this will have to change, simply because traditional political/engineering based ways of managing such infrastructure wont be dynamic enough.

Think how telecommunications and the internet would be if it were subject to political and bureaucratic horizons as to what you need.

That is today what happens with roads.

So whether you work as an infrastructure manager, engineer, policy maker, researcher, politician or a road user, think how much more innovative this sector could be, and what would happen if the cynicism and doubts so often seen are replaced with creativity and intelligent debate about practical change.  

Road pricing almost always will appear negative to those used for taking what exists for granted, it is the role of those of us who can see a vision of better highways, cities and transport networks to address the real concerns of so many.  It isn't about telling people how to get around, or punishing them, or trying to take more money from some to give to others with grand visions, but actually about being more rational about what is done now.  

Thursday, 6 June 2013

Normal service will resume shortly

Apologies for those who follow this blog, I have been unable to produce any content in the past few weeks due to a number of factors including being extremely busy with work, a severe family illness and a bereavement, as well as some travel (and my birthday).   As a result I have also been unable to present a paper I submitted to the 9th ITS European Congress in Dublin, which I should have been talking to today.

My friend Steve Morello, from D'Artagnan Consulting LLP, is presenting on my behalf today.

I hope to resume regular service within the next week or so, in the meantime I will publish a few posts I had nearly finished before the recent interruptions.

Monday, 24 December 2012

Season's Greetings

Wishing all of my readers a Merry Christmas, Season's Greetings, Happy Hannukah (I know it is already over), Winter Solstice and Summer Solstice, Lá an Dreoilín and a Happy New Year and Hogmanay (and other similar festivals this time of year).

May the next year bring plenty of health, wealth and happiness to yourselves, your families and loved ones.

Scott Wilson
Road Pricing Blog

(p.s. I will be publishing an end of year roundup before the end of the year, but wont be blogging regularly again till 7 January 2013)

Wednesday, 30 May 2012

Update, changes soon

Readers

I have been offline for a few weeks for unfortunate personal family reasons.  Apologies for this, I intend to return to "regular service" next week, following the Queen's Diamond Jubilee.

I look forward to having more regular articles, a series of minor catchups on the sector and to dedicate a little more time to updating on tolling and road pricing across the world.

Regards

Scott Wilson

Sunday, 1 January 2012

Happy New Year and apologies

Hi readers
Happy New Year to you all, and apologies for having done very little blogging in the past month.  It has been characterised by high volumes of work and then three weeks of leave when I positively enjoyed not writing or spending much time online at all.   Given this blog is a solo effort, it has been difficult to keep things up to date.

Nevertheless the past year has been interesting in the field of road pricing, not least because there has been continued expansion of tolling in developed and developing countries, but also the increased interest in using road pricing as a different way of raising revenue and charging for networks of road use, rather than individual roads or managing congestion in cities.  The USA has been at the forefront of examining how to do this, with Australia also showing growing interest.  

I hope to write extensively about this in the coming year, with support from esteemed professionals who I invite to contribute.

I wish all of you involved in the road pricing field, whether as operators, government officials, politicians, engineers, users, employees, academics or even consultants, have a Happy New Year, and all of the best for your families and loved ones.

Monday, 24 October 2011

News Briefs - Israel, South Africa, Tajikistan, Sri Lanka, Indonesia, New Zealand, Texas

Israel

Sale of stake in Cross Israel Highway:  The Cross Israel Highway (Route 6) is Israel's great north-south highway corridor extending from the outskirts of Haifa, to be nestled between Tel Aviv and Jerusalem, towards Beersheva.  The road is owned by concessionaire Derech Eretz Highways Ltd.  Globes reports that Shikun u'Binui Holdings has sold 24.6% of Derech Eretz to private equity company Israel Infrastructure Fund for NIS773 million (US$212 million). The sale reduces Shikun u'Binui's shareholding in the company to 25.5%, and the company reports a return on the sale of 8%.

Globes says:

Shikun u'Binui did not sell its 24.5% stake in Derech Eretz Highways Management Ltd., which operates the Road 6 toll road, and is waiting for permission to increase its stake to 35%. The deal reflects a company value of NIS 3 billion  (US$824 million) for Derech Eretz. The sale is part of IIF's effort to block rival Noy Infrastructures and Energy Fund's acquisition of 49% of the government's rights in Derech Eretz for NIS 1.39 billion (US$382 million). Shikun u'Binui said that the price tag was based on Derech Eretz's value in the Noy Fund deal. 

Price schedule is here in Hebrew

South Africa

Toll road success:  For all of the controversy over the Gauteng tolling project, it is clear that toll roads have already proven profitable for private investors in South Africa. The Financial Mail reports on the success of the N3 PPP between Heidelburg and Cedara (the complete N3 connects Johannesburg and Durban). N3 Toll Concession (Pty) Ltd won the concession in 1999 for a 30 year period, so is nearly halfway through the concession to design, construct, finance, operate and maintain the highway.   The concession has quite diverse ownership.   The article contains comments from Old Mutual Life Assurance Company Infrastructure, Development and Environmental Assets Ideas Fund manager Jurie Swart, who says 25% of the fund is invested in toll roads (other roads include the N4 between Pretoria and the Mozambique border, and the N1/N4 toll road).

Swart claims there are benefits beyond simply financing and building the road:"Each road has a pavement management system that has to conform to national road specifications. It has a dedicated engineering team, and a maintenance programme that must be audited independently. Toll toads like the N3 to Durban are also involved in local tourism efforts. " Certainly there is transparency about the contracts, and they do appear to help ensure a high standard of service.

Investors are keen to follow this with the controversial N1-N2 Winelands toll road. 

For all of the controversy over tolling in South Africa, it has worked to develop a lot of new highways, and most of all the PPPs have delivered world class standards of service.

Prices for the N3 toll road, per toll plaza, are here.

Tajikistan

A report from Trend notes that one of Tajikistan's major highways (M34) is a 354-kilometre toll road from Dushanbe to Chinaz. It is state owned, financed through a $280 million loan from China, which the Tajik government is repaying through the toll which started on 1 April 2010.

It wasn't easy to find much information about this road, but it is encouraging that tolling has penetrated central Asia, and I can only hope Tajikistan is making sure it optimises its revenue from tolls.

Sri Lanka

Toll road opening delayed:  Sri Lanka's first toll road opening has been delayed till December 2011 according to Lanka Business.   I reported the details about the road in July, when it was about to open.  Tolls were already controversial then for risking essentially fraud, and creating potential bottlenecks.  Well the Sri Lanka Road Development Authority has created more controversy with the delay, which is due to failure to complete toll booths and fuel stations on the road.   A fibre optic network is to connect toll booths, and the expressway curiously will have its own fire brigade and police patrols to optimise response to incidents.  Tolls are meant to be collected manually with a closed system involving a ticket issued on entry, and used on exit to determine the price.   Yes, you read correctly, and this is in 2011.

Indonesia

Astratel expands toll road portfolio:  The Jakarta Globe reports that Astratel Nusantara, the highway construction unit of Astra International, has bought 95% of the 40.5-km toll-road linking Kertosono and Mojokerto, in East Java (outside Surabaya) for Rp750 billion ($88 million). 

Astratel also owns:
- 79.3% of PT Marga Mandalasakti which owns the 72.5-km toll road linking Merak (Banten province) and Serpong (outer Jakarta); and
- 40% of PT Marga Trans Nusantara, part of a joint venture building the 12.5-kilometer Jakarta Outer Ring Road II project which will link Serpong and Kunciran in Jakarta.

The total value of its toll road assets will be Rp3.4 trillion(US$384 million).

New Zealand

Hapless toll road debt grows: I've written before about the financial disaster that is the Route K toll road in Tauranga.  The bad story continues.  The Bay of Plenty Times reports that debt from the road is now NZ$60 million (US$48 million) on a road that cost NZ$45 million, and daily traffic count is 5,000.  Revenue needs to double for the road to be viable, and at present trucks form 13% of users, but 38% of revenue.  Annual losses just go on debt.  How long can this continue?

Texas, USA

Indra wins contract: 4 Traders reports that Spanish company Indra has won a €10.6 million (US$14.7 million) contract with TexToll services in Texas (itself a subsidiary of Cintra, the subsidiary of Spanish infrastructure investor firm Ferrovial).  The contract is to implement electronic toll collection back office services on the SH-130 toll road near Austin, the LBJ Express project and the North Tarrant Express Highway project.  It reportedly makes a big impact on the firm's presence in the USA.

Spam

I moderate comments for one reason - spam.  If you attempt to post spam you will be blocked, and you will fail.  I have so far allowed one comment with a spam link, and it wont happen again.  This blog does not exist to promote your business.  It exists to publish articles I find of interest that I hope others find of interest as well.  Spam at best wastes time and is a nuisance, at worst it can spread malware.

Wednesday, 20 July 2011

100th post

I started this blog primarily to be a website where anyone interested in tolls and road pricing could find a comprehensive list of links to all sorts of pricing systems from around the world. This covers not just conventional tolls, but HOT lanes, urban congestion charging systems and network tolling and distance charging systems for heavy vehicles (and all vehicles).

I perceived a “gap in the market”, between what is offered by the only other similar website, as I sought news on road pricing from around the world, not just the US.

Of course, having adequate time to do this is a challenge that I have failed to deliver consistently in the past few months, but it is my hope to improve this and to be a reliable central source for news on the road pricing/toll sector worldwide. My focus is on major developments, which means steps forward in terms of policy, technology and the introduction of new road pricing systems. It means I am not covering minutiae or minor local issues, or specifically, whether or not a road should be built, but rather strategically interesting issues around tolls.

My hope is that you find it interesting enough as a reference point, and as a place to come for such information, with a little commentary added in from my perspective. I also intend to occasionally feature articles which are not simply reporting news, but taking a more incisive view of recent developments.

I don’t want this blog to be specifically political, but it will reflect an outcome based approach. I am interested in results, in outcomes for road users and those who live and work adjacent to roads (which is largely everyone!). I am interested in economic efficiency, safety and efficiently minimising the negative externalities from transport. I don’t believe that transport, as a sector, should be subsidised as of right, but do believe that the public policy goals for transport should be transparent, and policies implemented based on achieving clear objectives, not because the policies themselves are seen to have merit in themselves.

I firmly believe that the levels and extent of road pricing around the world will increase, in part because technology will make it ever easier and cheaper, in part because the economic and environmental benefits from better pricing a scarce resource (road space) are abundantly clear and finally because the tolerance of motorists and taxpayers in charging other activities (or proxies for road use, such as fuel) is continuing to be pressed. People are typically willing to pay for what they use, they are less tolerant of paying for one thing, and finding the money is used elsewhere.

So, please continue to read, and gain insights into developments around the world, as interest in road pricing continues to grow.

Monday, 28 February 2011

Apologies

Sorry for the break in service, I have been moving home at the same time as work has become more like 60 hours than 40 hours, so in the midst of all that, there has been some neglect of this project.   On top of that, home broadband service has been delayed for two weeks.

Tuesday, 4 January 2011

Happy New Year

Hope you all have had an enjoyable Christmas/holiday season and New Year's break.  Full service will be resumed shortly.

In London, congestion charge signs have been getting removed around the Western extension and prices updated for the central zone to £10.  However, elsewhere news about tolling has not come to a halt.  In 2011 I expect tolls will continue to grow in popularity to fund new highways, but the bigger questions about moving from fuel taxes to road pricing, and how to manage congestion will remain.  

The technological questions will move towards whether automobile manufacturers should be including IT and communications in new vehicles, which they wont do unless there are market reasons to do so (or it is legally mandated).  In addition, with 3G mobile phone technology including GPS systems and on board maps, the bigger issue will be whether road pricing can actually be implemented using existing consumer equipment.  There may be issues of security, and certification of sufficient accuracy, but these are matters that lend themselves to commercially driven solutions.  I doubt very much if government departments are able to manage the risks and opportunities that arise from this.

One thing to be sure, the technology may continue to develop, but the biggest issue by far is public opinion.  Motorists tend to feel ripped off, ignored or vilified by some politicians, environmental groups and bureaucrats.  Road transport is a critical part of the infrastructure of all countries and cities.  It is about time that the management of road infrastructure faced the incentives and responsibilities that are commonplace with other infrastructure, and moved to the 21st century, instead of being stuck in the 19th century.

The solutions to sustainable funding of road infrastructure, effective congestion management and addressing the external impacts of road transport do not lie in continuing to simply do what has been done before.   It certainly isn't to continually increase fuel taxes by increments and use the money to pay for general government activities.

All the best for 2011 wherever you may be, whoever you may be, as advisor, planner, engineer, lawyer, accountant, politician, bureaucrat, motorist, activist or simply interested observer.

Scott Wilson
Road Pricing Blog

Tuesday, 16 November 2010

Introduction - Road Pricing Blog

Welcome!  The purpose of this blog is to provide a repositary for global news and commentary about the field of road pricing.

Why?

It's simple.  There is information and commentary about road pricing across the internet, but no single site dedicated to the issue on a global scale.  There is one website which concentrates almost entirely on US tolling news, but none which give equal coverage to events elsewhere in the world.  Even Wikipedia does a poor job of summarising the facts around these issues, partly because of the wide range of terminology which has been used.

I have spent the last ten years working in road infrastructure policy, including road user charging with projects in the UK, USA, continental Europe, Hong Kong, Australia and New Zealand.  It includes managing transitions towards free flow tolling, urban congestion charging and distance based charging.

I hope this blog will have guest commentaries and present different regular columns and insights into current issues.   As you can see, the column on the right has a long list of websites covering a wide range of types of road charging, including links to existing systems.

So what is road pricing?  Well if you are familiar with any of the overlapping terms below, it is ALL of those in relation to charging for road use:

Tolls/tolling
Road user charging (RUC)
Congestion pricing
Congestion charging
HGV charging
HGV tolls
Electronic fee collection
Electronic road pricing
Electronic road user charging
Time Distance Place (TDP) charging
Cordon charging
Cordon pricing
Mobility pricing
Toll lanes
High occupancy/toll (HOT) lanes
Road pricing
Road charging
Vignettes
Electronic free flow tolling
Value pricing
Area pricing
Area charging
Eco charging
Access charging

I wont be attempting to narrowly define any of these, except that I will be attempting to distinguish between a few key types of road pricing, based on geography and chargeable event.  What matters is not so much terminology as clarity of understanding about what is meant.   So when I describe a road pricing system as a "toll" or "road user charge" or "congestion charge" there will be an element of the system that lends itself to that term.  I will prefer to use the official titles where possible, even though they do not always capture all of the key characteristics of the system.

In any case, welcome to this blog.  It will carry regular updates about major developments in road pricing, including new systems, major changes to existing ones, and debates about introducing new ones.   If you have any comments or suggestions that are not appropriate for individual posts, please email them to rationaltransport at yahoo dot com.

Regards

Scott Wilson
Rational Transport