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Gautrain’s proposed road toll taxes are a sore point for many people, which is probably the reason why Government is delaying the announcement of the exact fees until after the municipal elections. Taxing commuters in an attempt to reduce road congestion has been attempted – and has failed – in several major cities.
Deloitte UK partner Simon Dixon was in South Africa last week advising the SA National Roads Agency (Sanral) on what he’s learnt from assisting in the implementation of similar projects in London, Auckland, New York and Stockholm. All of those were the subject of complex public transport schemes extremely unpopular at the start of their implementation.
Dixon says the reason why the congestion scheme to clear New York’s roads fell through was due to political clashes within the state.
In policy research on the topic, the NICHES Consortium of urban transport experts recommended road pricing schemes act as signals to consumers about the real cost of the provided service. The majority of the criticism about Gauteng’s tolling system is associated with the cost burden that will have to borne by the poorer members of society. A similar situation in Auckland in New Zealand resulted in a rethink of the entire project. Rome attempted to bridge over its negative socioeconomic impacts by offering subsidies and incentives to motorists switching to cleaner forms of transport – a policy Dixon believes could be applied to SA’s commuter taxi system.
In addition, Government hasn’t been completely transparent about its intentions for other taxes imposed on SA’s motorists, such as the carbon emission tax on new vehicles imposed last year.
Dixon also advised Sanral on flexible terms with technology providers – Imperial Holdings is one of the companies that will be responsible for implementing the vehicle-tracking technology – as the use of technology will need to adapt to the inevitable later re-incarnations of the tolling system.
Road pricing schemes worldwide
CENTRAL LONDON: Congestion charging was introduced in London in 2003 and considered successful, with an estimated 30% reduction in traffic since implementation. The city has also noted a 12% reduction in traffic pollutants, improving overall quality of life.
STOCKHOLM: It implemented a seven-month congestion charge trial, which was found to have a positive effect on traffic volumes, the environment and residents’ health. However, a cost-benefit assessment found the trial to be financially unsuccessful and it has since been abandoned.
NEW YORK: Mayor Michael Bloomberg announced the PlaNYC2030 in 2007. The proposal involved a tax on vehicles moving into the Manhattan business district – which was met with criticism that it would place an additional burden on people travelling into the city from the suburbs. It was never implemented.
SINGAPORE: The first city to introduce urban congestion charging in 1975. The system has evolved several times since the first visual checks performed by police patrols back in the Seventies. The latest change will introduce GPS technology.
Sources: NICHEAS transport and citytransport.info
Deloitte UK partner Simon Dixon was in South Africa last week advising the SA National Roads Agency (Sanral) on what he’s learnt from assisting in the implementation of similar projects in London, Auckland, New York and Stockholm. All of those were the subject of complex public transport schemes extremely unpopular at the start of their implementation.
Dixon says the reason why the congestion scheme to clear New York’s roads fell through was due to political clashes within the state.
In policy research on the topic, the NICHES Consortium of urban transport experts recommended road pricing schemes act as signals to consumers about the real cost of the provided service. The majority of the criticism about Gauteng’s tolling system is associated with the cost burden that will have to borne by the poorer members of society. A similar situation in Auckland in New Zealand resulted in a rethink of the entire project. Rome attempted to bridge over its negative socioeconomic impacts by offering subsidies and incentives to motorists switching to cleaner forms of transport – a policy Dixon believes could be applied to SA’s commuter taxi system.
In addition, Government hasn’t been completely transparent about its intentions for other taxes imposed on SA’s motorists, such as the carbon emission tax on new vehicles imposed last year.
Dixon also advised Sanral on flexible terms with technology providers – Imperial Holdings is one of the companies that will be responsible for implementing the vehicle-tracking technology – as the use of technology will need to adapt to the inevitable later re-incarnations of the tolling system.
Road pricing schemes worldwide
CENTRAL LONDON: Congestion charging was introduced in London in 2003 and considered successful, with an estimated 30% reduction in traffic since implementation. The city has also noted a 12% reduction in traffic pollutants, improving overall quality of life.
STOCKHOLM: It implemented a seven-month congestion charge trial, which was found to have a positive effect on traffic volumes, the environment and residents’ health. However, a cost-benefit assessment found the trial to be financially unsuccessful and it has since been abandoned.
NEW YORK: Mayor Michael Bloomberg announced the PlaNYC2030 in 2007. The proposal involved a tax on vehicles moving into the Manhattan business district – which was met with criticism that it would place an additional burden on people travelling into the city from the suburbs. It was never implemented.
SINGAPORE: The first city to introduce urban congestion charging in 1975. The system has evolved several times since the first visual checks performed by police patrols back in the Seventies. The latest change will introduce GPS technology.
Sources: NICHEAS transport and citytransport.info
