Showing posts with label Japan. Show all posts
Showing posts with label Japan. Show all posts

Thursday, 16 May 2024

Japan planning introduce time and location based pricing on expressways nationwide

 Japan's nationwide expressway network is run by a series of private businesses. In 1956, the Japan Highway Public Corporation was formed to build and operate a national highway network, using tolls and accessing private financing. At the time, only 23% of Japan's national highway network was sealed including only two-thirds of the Tokyo-Osaka highway.  Tolling was extensively used, and for sections of highway that did not gain private finance, the government guaranteed the loans. Tolling revenue was pooled to cross-subsidise parts of the network that did not generate enough toll revenue to pay for construction (details on the history of highway in Japan is available here (PDF). 

In 2005, the Japan Highway Public Corporation was split and privatised into multiple companies, including the Japan Expressway Debt Repayment Agency (to use toll revenue to repay the considerable debt that remained for the development of the network) and six regional expressway companies. They are:

  • East Nippon Expressway Company Limited;
  • Central Nippon Expressway Company Limited;
  • West Nippon Expressway Company Limited;
  • Metropolitan Expressway Public Corporation (Tokyo);
  • Hashin Expressway Public Corporation (Osaka-Kobe-Kyoto); and
  • Honshu-Shikoku Bridge Authority.
Tolls were authorised to be collected until 2050, recently extended to 2065.  The privatisation was driven by several concerns, in particular:
  • As Japan's network had essentially been completed, there was concern about public ownership enabling politicians to authorise new construction that favoured the construction industry, even if projects were not viable. 
  • The pooling of toll revenue nationwide was seen to enable this cross-subsidisation where there was no need for new infrastructure. Residents objected to paying higher tolls in their area for projects that were far away from them and of dubious economic value.
  • Interest in improving the efficiency of administration and encourage innovation in operations of the network.
  • Interest in enabling comparisons between the performance of companies so encourage more productivity and lift standards across the sector.
  • Concern about the levels of debt government was taking on for the expressway company, and privatisation was seen as a way to put discipline on costs, debt and the scale of capital spending.

Map of Japan's expressways and major highways

The national expressway network is 9050km long. Tolls in Japan are generally set to reflect distance travelled between interchanges, and vary by vehicle type. Most toll roads still have a mix of electronic and manual toll lanes.

So the announcement in the Japan Times in the past week that the Ministry of Land, Infrastructure, Transport and Tourism will be introducing the ability for expressway companies to introduce time-of-day varying tolls, based on location, to manage congestion, is a significant step for the history of expressways in Japan.  It was trialled during the 2021 Tokyo Olympics with a higher daytime charge, and discounts after midnight, but the idea is that time periods and variations in toll fees will depend upon the specific route and the conditions on it. This is NOT dynamic tolls, but rather targeted congestion pricing to enable more free flowing traffic and reduce pollution.

Also announced was the enabling of commuter passes for high frequency users of toll roads in particular areas, to encourage greater use of expressways to remove traffic from untolled parallel local roads.

What will be of interest is how congestion pricing (which is what it is) will be applied to urban tolled expressways as there is an obvious risk that it could divert some traffic onto parallel routes, and it would not take much of a diversion to severely impact such routes. Although most urban expressways offer significant improvements in travel time, there may be localised points of networks to avoid tolls that could cause worse congestion on the local network (which is not the responsibility of the expressway companies).

Tuesday, 17 February 2015

The "war on cars is winnable" doesn't need to be "a war"

An interesting, but lengthy article by Carlin Carr on a Scroll.In website puts forward the case for how cities can avoid being heavily congested by cars, and makes some valid points.

For Japan, yes here is a country with dense rail transport, albeit much in dense cities where such rail is profitable.  This has meant that rail travel is very normal for residents in major cities and between cities, bearing in mind distances between many of the major cities are not large, lending themselves well to fast rail travel.

What missing about the analysis around Japan is two key factors. The ruling Liberal Democratic Party (which literally monopolised government in Japan until the 1990s) has always been closely aligned to the construction industry, which was largely relaxed as to whether vast amounts of money were poured in roads, railways or airports.  In truth, Japan has overbuilt much of its infrastructure, with there being more than enough road and railway capacity outside metropolitan areas.  While the original Shinkansen lines have demonstrated positive economic results, more recent lines have not, as they simply reflect a belief that building infrastructure is good in itself.  It isn't, and Japan is, in part, paying for this now, with public debt in excess of 200% of GDP, and a stagnant economy.  It's worth noting Japan's railway system is privatised, and has always has an element of competition even before that.  The second point is alluded to in that all major national highways are tolled, and urban routes may also be tolled, but the national highway network is Japan is privately owned (under a PPP lease).  As such, the roads are managed commercially and tolls set to recover maintenance costs and the cost of the lease of the assets, so tolls have to cover costs and generate a return.  Yes the shaken (regular safety inspection and tax) does incentivise lower levels of car ownership, but it also incentivises rapid turnover of the fleet, with old vehicles not remaining in the fleet in large numbers because of the costs of them meeting safety and emissions standards.

Singapore remains the world's most sophisticated example of urban road pricing.  No other city charges by route, direction of travel and time of day with differential pricing based on congestion, and it works very well.  Yet many will point out that Singapore has specific characteristics that make it special.  One is that housing density is high, as a city-state, it is easy to develop the densities of travel that make public transport viable.  Singapore's metro, for example, does not require subsidies for operation and renewals.  Secondly, is that Singapore has a combination of a highly credible judicial system and public bodies for enforcement, and a culture of compliance that means it is easier to implement such a radical solution in the city-state. 

As far as solutions are concerned, there is plenty of merit in developing cities in countries like China and India providing heavily for pedestrians and cyclists, so that these options for short trips remain preferred, and then to focus on enforcing parking laws and in rationing parking by price.  Beyond that, regardless of whatever planning options are chosen, the future for rationing road space belongs to road pricing.

Of course, to do that requires some key elements to be in place, which includes the ability to robustly track down violators and to enforce violations meaningfully, which isn't always possible in countries where number plates and databases of owner records are haphazard.

However, my main point is that it shouldn't be seen as a "war" on cars.  Cars have a role in cities, it is just about how cities ration precious road space so they pay for it appropriately.  Of course not everyone can use their car at the same time, it's not physically possible and when they try, it creates negative externalities for others.

Rationing road space rationally!

Yet, if you pay to park and pay to use the roads, at a price that ensures an efficient flow of traffic, then it should be fine to use your car.  Disabled motorists might be given preferences or discounts to recognise that alternatives for them may not be viable, but overall the roads can be managed so that, like other scarce resources, their use gets rationed by price.  

The first step to doing this is to ration road use by basic enforcement of requirements around safety - that drivers have licences, that vehicles are safe to be on the roads, and for regular violators of safety related laws to lose licences.  It requires that parking laws be enforced where they interfere with road safety and capacity, but after that a rational approach to rationing road space used for parking and loading should be considered.  Charging for access, time limiting access for loading, setting aside spots for disabled vehicles and bus stops, all of these sound basic to those with well developed highway rules, but need to be the first approach for many developing countries.

Intelligent technology makes dynamic parking charges all the more possible, and from then we go to pricing.  Whether it be tight city centres, or major new capacity, or charging cordons, zones or by distance, it can be introduced in steps, and what it is about, is not just thinking about mode choice but route choice and time of day choice,

No planner can second guess the best option for anyone on a particular trip whether it be for themselves, family or for goods, but by pricing roads and parking rationally, these choices can appear, and can come from either using roads differently, or using other modes.

It's not about a war, it's about applying a rational approach to rationing a scarce economic resource,