HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012

Freight and Logistics Council of WAA more holistic HVCI Reform

Meena Naidu, Project Director30 August 2012

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012

The disconnects:• between the charges paid by users and the expenditure needed to

provide heavy vehicle road access

• between the funds received by governments and the monies actually spent (and required to be spent)

• between the three levels of government in planning, investment and allocation of funds for heavy vehicle road services.

A broken system

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012

CRRP Feasibility Study

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012

The new focus for HVCI

Government

Community

Freight customer

FundingInvestment and planningAccess and incentives

Charging and regulation

Heavy vehicle user

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012

The new heavy vehicle charges and investment framework

HV investment and co-ordination function

Planning function

Infrastructure/service provision function

LV/CSO funding (Govt taxation

revenues)

Regulation function

Heavy vehicleusage

HV Funding(Charges revenue)

Access

Payment for access based on regulated charges and usage

Funds allocated based on usage, to fund investment

Contribution to mixed

investment

Broad multimodal transport planning considering community and broader supply chain requirements

HV Financing

LV/CSO investment and co-ordination

function

Light vehicleusage

National LocalSupply chain

LV/CSO Financing

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012

• HV charges revenue will be tied to HV related capital and maintenance investments and will not go into general revenues.

• HV related investment that are funded through charges will not be determined through current budgeting processes

• Charges will only fund commercially viable maintenance and capital investment (i.e. where sufficient benefits accrue to the heavy vehicle user to justify the cost)

• Governments will need to fund investments that are not commercially viable through general taxation revenues but will not be recoverable through charges – there is no restriction to the extent to which governments wish to do this

The threshold issues

HEAVY VEHICLE CHARGING AND INVESTMENT REFORM: WAFLC Meeting : August 2012

Proving the benefits

• To what extent is access currently being limited due to a lack of funds or funding uncertainty?

– To what extent do infrastructure bottlenecks exist within the system?

• To what extent will access be compromised in the future due to a lack of maintenance?

• Will the broader supply chain be interested in providing infrastructure if costs are recovered through charges?

• How can transparency lead to better investment and usage?