toll revenue policy: opportunities for new revenue and congestion management
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Toll Revenue Policy: Opportunities for New Revenue and Congestion Management. Mark F. Muriello Assistant Director Tunnels, Bridges and Terminals. November 16, 2010. The Port Authority of NY & NJ: Delivering Vital Connections. Tunnels and Bridges - PowerPoint PPT PresentationTRANSCRIPT
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 TollsCASH 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: $4.00 per trip for 20 trips within 35 days.
Bus TollsCASH All Hours
AllHours$ 4.00 $ 6.00
Public Communication PlanWide-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 StatesNot 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 AccomplishedIntroduction 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 AccomplishedSupport and advocacy from publicly trusted and respected advocates.
What Do Customers Think?
60% 40% 29%71%
Agree Disagree Agree 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.
Tra
ffic
Dis
trib
utio
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.
Tra
ffic
Dis
trib
utio
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-ZP
ass
Parti
cipa
tion
Rate
ActualFittedUpper BoundLower 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
20022009
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 FeedbackSign (DFS)
and Traffic LightRear 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 ComplexitiesLicense 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 Stages
Implementation 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