Toll Revenue Policy:

Opportunities for New Revenue and Congestion Management

November 16, 2010

Mark F. MurielloAssistant Director

Tunnels, Bridges and Terminals

The Port Authority of NY & NJ:

Delivering Vital Connections• Tunnels and Bridges Holland Tunnel, Lincoln Tunnel. George

Washington Bridge, Outerbridge Crossing, Bayonne Bridge, Goethals Bridge

• Bus TerminalsPort Authority Bus Terminal, George Washington Bridge Bus Station, Journal Square Transportation Center

• PATH Rail Transportation• Airports J.F. Kennedy, LaGuardia, Newark Liberty, Stewart

• Marine Terminals Port Newark, Port Elizabeth, Howland Hook,

Brooklyn, Red Hook, Auto Marine, Greenville

• Economic/Waterfront Development Resource Recovery, Industrial Parks, Teleport,

Newark Legal & Communications Ctr, Hoboken

• The World Trade Center Site

Transportation As A System

Integrated operations Demand management Payment choices

A view that transportation assets are a system that provide mobility for people and goods manifested through:

Investment decisions Asset Replacement Strategic capacity

enhancement

Annual Cost exceeds $8 Billion Peak Volumes at Key Links Exceed Capacity Hours of Delay Expected to Grow by 60% in 20 years. Heightened Region-wide Air Quality Concerns Overburdened Freight Routes Hurt Competitiveness

Congestion: A Sense of Urgency

Toll Policy

Address the Port Authority’s financial capacity to deliver programs. Capacity to deliver the Capital Program. Capacity to address ongoing Port Authority needs (i.e., state-of-

good repair, mobility improvements, security, etc.) Capacity required for future regional investments.

Address congestion throughout the regional transportation system.

Promote equity through a fair distribution of costs to users.

Advance a publicly acceptable and supportable program of charges and benefits.

Increase the E-ZPass market share. Encourage shifts to off-peak travel to address peak-

period congestion. Encourage mass transit and higher vehicle occupancy. Support commercial vehicle management incentives. Advance discounts that support congestion mitigation. Advance toll rates that are easy to understand and

implement.

Toll Policy Objectives

PA Auto Toll History

1970 $ 1.001975 $ 1.501984 $ 2.001987 $ 3.001991 $ 4.00

2001 $ 5.00 $ 4.00 $ 6.002008 $ 8.00 $ 6.00 $ 8.00

Peak Off-Peak

Cash

Auto Tolls

CASH All Hours

PeakHours

Off-PeakHours$ 6.00 $ 8.00 $ 8.00

OvernightHours

PeakHours

Off-PeakHours

CASH All Hours

$ 7.00 $ 8.00 $ 5.50 $ 8.00

Truck Tolls(Per axle)

HOV 3+ Carpools: $2.00 per trip

Current Toll Rates (Eastbound Direction Only)

SIB Discount Program: $4.00 per trip for 20 trips within 35 days.

Bus Tolls

CASH All Hours

AllHours

$ 4.00 $ 6.00

Public Communication Plan

Wide-ranging customer communications program and materials.

Web Site Toll-free Telephone

Information Direct Mail Advertisements In-Lane Materials Toll Plaza Handouts

Stakeholder Outreach

Elected Officials & Community Groups

Business & Industry Groups

Special InterestsTransportationInterests

Public Hearings in Two States

Not a statutory or regulatory requirement.

An agency policy to seek input from the general public and interested parties.

A balanced schedule of locations and times (including internet sessions) to ensure full representation of the region.

Comments also collected through written statements submitted at public hearings, and via US mail and email.

The Importance of the Media

The importance of using the media effectively cannot be overstated.

Newspapers, radio, and television stories and interviews:

Ensuring the facts are presented accurately.

Keeping the program in the public eye.

Informing the public about the needs and objectives.

The New Jersey Television Network

Using Employees as Ambassadors

Training the workforce: Pricing program information Handling customer complaints

Employees given comprehensive program details and explanations: Mailed employee information package. Program updates and details on Port

Authority intranet. Staff briefings and newsletters.

Employees became part of the communication plan with friends, family, neighbors, civic and community groups, etc.

What We’ve Have Accomplished

Introduction of meaningful congestion pricing to the NY-NJ region.

Growth in E-ZPass market share, allowing higher-speed toll plazas and the first highway-speed bridge toll plaza.

What We’ve AccomplishedPublic Acceptance & Support

Outreach to the editorial boards of the major regional newspapers paid tremendous benefits.

Most effective means of educating the public and shaping opinion.

November 18, 2000

The Cost of Crossing the Hudson… Price hikes are inherently painful, but these are worth applauding, if not demanding, as a matter of fairness and as a means to fight congestion.

January 18, 2001

The Case for Hikes… (The Port Authority) has devised a rate change designed to prevent a web of traffic jams from strangling bistate commerce.

What We’ve Accomplished

Support and advocacy from publicly trusted and respected advocates.

What Do Customers Think?

60% 40% 29%71%

Agree DisagreeAgree Disagree

Is It Fair To Vary Toll Rates...

To Improve Congestion?

To Support Public Transit?

Travel Time Flexibility of CustomersSmall shifts in peak period demand have meaningful

congestion benefits.

Lincoln Tunnel automobile respondents

0%

10%

20%

30%

40%

50%

60%

Morethan 2hours

2hours

1 hour

30mins

15mins

5 mins

Can'tshift

earlier

Can'tshiftlater

5 mins

15mins

30mins

1 hour

2hours

Morethan 2hours

Shift LaterShift Earlier

45%

30%

The Traffic Management Benefits5-

10 A

M P

ctg

. T

raff

ic D

istr

ibu

tio

n

10%

12%

14%

16%

18%

20%

22%

24%

5 - 6 AM 6 - 9 AM 9 - 10 AM

2000200120022003200420052006200720082009

The Traffic Management Benefits5-

10 A

M P

ctg

. T

raff

ic D

istr

ibu

tio

n

16%

17%

18%

19%

20%

21%

22%

3 - 4 PM 4 - 7 PM 7 - 8 PM

2000200120022003200420052006200720082009

The Traffic Management BenefitsPercent of Total Truck Traffic

22% 21%

8% 10%

24%20%

8%11%

39% 37%

0%

10%

20%

30%

40%

50%

Overnight AM Peak Midday PM Peak Evening

Midnight to 6AM 6AM to 9AM 9AM to 4PM 4PM to 7PM 7PM to Midnight

2000 2008

E-ZPass Share: Heavy Trucks

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

2000Q1

2001Q1

2002Q1

2003Q1

2004Q1

2005Q1

2006Q1

2007Q1

2008Q1

2009Q1

2010Q1

E-Z

Pas

s P

arti

cip

atio

n R

ate

Actual

Fitted

Upper Bound

Lower Bound

Truck participation in E-ZPass has grown significantly since the introduction of time-of-day discounts.

E-ZPass Share: Autos

Transit Ridership Growth

0

10000

20000

30000

40000

50000

60000

70000

80000

PATH Ridership Interstate Bus Ridership

2002

2009

Annual Transit Riders

What Does The Public Think?

Prefer New Tolls

Prefer No New Roads

41% 41%

18%

Paying for new road construction….

Source:USA Today, Kelton ResearchSeptember 13, 2010

The Importance of Toll Finance to States

Tolling Technology Is Transforming Transportation

Express Lanes / Open-Road Tolling High-Occupancy Toll (“HOT”) lanes Private sector investment Non-toll applications (e.g., parking, PierPASS) New toll projects

GOE-ZPASS

Driver Feedback

Sign (DFS)and Traffic Light

Rear VESCamera

Front VESCamera

Treadle

AVI Antenna

Canopy Traffic Light

Overhead Vehicle Profiler

Mark IVRFID Tag

ABC-123

Lane Mode Sign (LMS)SM

E-ZPass – How It Works

E-ZPass Customers

Patron establishes account linked to a tag, which is placed in the vehicle

Tag is read in the toll lane

Toll is deducted from the Patron’s account

Image taken of license plate

Compared to valid customer list and debited from account

Look-up request sent DMV if NOT a customer

DMV address information is used to issue a “notice of violation” to the registered owner of the vehicle

Violators

License Plate Look-Up Complexities

License Plates Are Complex• Multiple Plate Type Codes• Duplicate Plates• Vanity Plates• Contrast between numbers and

backgrounds• Colors used in the numbers (red is

bad)

Data Accuracy • Change of addresses not submitted

by owners in a timely manner• Data entry variations

Rules Vary for Entering Plate Information

• What plate characters must be entered

• How to interpret data on the plate

Electronic Toll Collection:

The Evolution of the Toll Industry

1980 2000 20101990

Development StagesDevelopment Stages

Implementation StagesImplementation Stages

Electronic Toll Collection Open-Road

Tolling All-Electronic Cashless Tolling

Electronic Toll Collection

Open-Road Tolling

All-Electronic Cashless Tolling

Serve and Satisfy An Array of Customers

An Interoperable Future:

Matching Customers and Payment Methods Customers Come in Various Types….

New Payment Methods and Channels

…. So Will the Payment Methods of the Future